I quite understand and sympathise with your view BD, but differences between the UAE and UK in the ways of doing business exist and any company ignoring them (or not adhering to them) will not secure the deal. It is part of the 'rules of trade' in certain countries around the world, whether overt or covert. We would be naive to think otherwise, and I think Johnners summed the situation up nicely with his view that other countries wouldn't think twice.
Your point about schools under trees etc is rather moot in my opinion as the regime looking to buy such hardware would have already ear-marked the billions of (whatever currency) for their 'defence' budget, regardless of who wins the contract at the end. (As an aside, in the case of UAE and the Al Yamamah deal, there is very little poverty indeed meaning little or no missed opportunity to build schools etc)
I think these rules apply whatever you're selling, it just so happens that in this example it is defence equipment that gets folk's backs up in the first place.
(All meant in the spirit of debate :-))