Those restrictions do not apply in the business district, AFAIK. There is a lot of encapsulation that Dubai provides international businesses from their local restrictions.
Besides, my recommendation was for conducting YC interviews, not exactly living there. A 2-day YC tour conducting interviews in Dubai would enable founders from 3 continents to participate more heavily.
I am not judging an entire country. I am judging their legal system, their sense of ethics and morality. There is a difference between a loose canon cop or idiot killing someone because of racial reasons and a whole ethical and moral and legal system which do not conform to my sense of morality. I would avoid the entire Middle East for this reason.