Abstract: This paper attempts to draw up and apply an analytical framework for tracing and understanding duality features in the resource rich labour short developing country. The focus is on UAE and GCC, The framework is guided by (a) a simple model at the macro level that highlights duality tendencies in terms of the composition of high skilled and low skilled labour and their diverging productivities, and (b) an inter-industry analysis at the sector level. The paper elaborates further on whether dualistic development matters; and if it matters, what can be described as the optimal degree of dualism in a given context. As there is no simple answer to this issue an empiricist approach is followed by which various comparative indicators relating to duality are reviewed, rescaled and aggregated for UAE and GCC. The indicators show a significantly higher duality of UAE than in neighbouring countries. Duality in UAE is explained in terms of a more open market for foreign labour and capital that reinforce each other, and which have highly contrasting and opposite effects on factor productivity; next to built-in inter-industry mechanisms that work in the same direction.