Of course they do. How would you expect legal entity to operate without cooperating with local government.

The question is: can German police compel Dubai police to perform the query? Can Russian police to that? Can US police do that?

May be UAE will be 21-century Switzerland which failed miserably at being independent, but this specialization of being independent is in demand.

It's hard to say no to the government that can send policeman to your house.

I don’t think UAE is particularly well known for taking a hands off approach. They almost certainly have an unspoken arrangement in exchange for an otherwise drama free existence there.

If they don't, people with guns show up.