States have the right to discriminate, as long as they allow secession. I am not in favor of the State, but humans, in a state of anarchy, have the right to form alliances within their communities and to create a government - which you would call a State. States are not, de facto, illegitimate. Only when they don’t allow secession or act without the consent of the governed are they null and void.
That is why States are so long lived. They never go in peace, because they always assume they represent the consent of the governed. Only violence or bankruptcy can bring down a State. After all, I can disagree with my fellow citizens, yet still desire the protection of the mutual governance. Only when enough of the citizenry is willing to risk their own lives, will the State be forced to recognize the polities malcontent.
It is a testament to the freedom of Dubai and its citizens that it is so prosperous. It is a testament to America’s diminishing freedom, that our prosperity is shrinking.