UAE is in a tough spot because while they have diversified from oil, the industries they have diversified into like tourism, air travel and banking, were relying on a halo of safety that turns out to not exist.
So no, they most definitely can have their cake and eat it, and have done so for over two decades.
They also turn a blind eye to plenty of other things that go against conservative islamic values: alcohol is served onboard, gay flight attendants are employed, etc. So it’s surprising to me that they aren’t a bit more tolerant here.
It may be confusing to others but it's ultimately your choice.