Strategic leadership has played a significant role in establishing and advancing institutions in the United Arab Emirates (UAE) over the last 50 years. This study focuses on exploring the transformation of the United Arab Emirates from an oil-dependent state to a diversified and modern economy by understanding the theoretical frameworks and highlighting the unique characteristics of its transformation model. This study utilized a comprehensive evaluation framework to analyze several areas, i.e., economic diversification, technological innovation, education, healthcare, and social welfare. The findings of this study indicate that the UAE’s approach aligns with modernization theory concerning infrastructure and social services, while its endeavors to enhance the country’s control of its resources, politics, and economy are congruent with dependence theory. Institutional theory offers valuable insights into the governmental efforts that drive societal and economic transformations. The UAE’s transformational model is characterized by forward-thinking leadership, proper utilization of wealth, and economic development. The UAE offers valuable insights into other countries and highlights the importance of continuous reforms and adjustments to achieve sustainable growth and global integration. Nevertheless, the UAE’s development trajectory requires acknowledging the specific domains that require additional enhancement.