The transportation system is a growing concern as economic development progresses. It has become one of the major causes of air pollution as well as deaths world-wide. Hence, the transportation system is not a sustainable path in the world today. The United Arab Emirates (UAE) is a fast developing economy with poor traffic safety. Hence, the purpose of the thesis is to examine the relationship between economic development and traffic safety in the UAE. This is achieved with the support of the Kuznetz Curve Hypothesis, which indicates a positive relationship between economic development and road traffic fatalities initially. However, it will come to change into a negative relationship as the economy develops further. In addition, Institutional Theory states that institutions and organizations contribute to a successful economic development. In order to identify the development of traffic safety in the UAE, the characteristics concerning the issue in the country must be defined. Hence, a comprehensive analysis of the traffic safety in the UAE is carried out with the support of the Kuznetz Curve Hypothesis and Institutional Theory. A regression analysis confirms that there is a relationship between traffic fatalities and economic development. Until today, traffic fatalities have increased with national GDP in the UAE. Yet there is no reason to believe that this relationship has changed for the better. However, according to Institutional Theory, an improvement may be achieved through active work. It is important for the public authorities in the UAE to set explicit goals, so that institutions and organizations are able to integrate and coordinate their struggle for a safer traffic.