Sovereignty doesn’t mean that much when it isn’t enforced. It’s a popular approach in the Middle East these days - countries agree to build company towns where residents can essentially pretend they’re living in the West, sometimes with a parallel justice system, no expectation of modest dress, etc. Look at KAUST and Neom (if that ever happens) in Saudi Arabia, Abdali in Amman, the Green Zone in Baghdad. It keeps the rich expats living in your country happy without making you actually improve living conditions for everyone, including the native-born population. I fully expect that the Gulf expats who move to this development will be made to feel like they’re still living in the Gulf, the security/police will be private, and it’ll be designated a “free trade zone.”