Language has affected the development of the UAE. There are many languages spoken there. It is also very central to a lot of countries so many different languages are spoken there as a result. It's language diversity has definitely made an impact on the development of the UAE. Knowledge of English is very important there for jobs because of previous British rule.
The United Arab Emirates is a small country to begin with, but I do not believe that language has effected its ability to grow and or develop. In fact its capital Dubai is one of the most interesting vacation destination and is very rich in oil. Its airport in Dubai is one of the largest in the world. I don't think language has affected the development at all.