Hi There Cod,
We had our baby delivered in the UAE and everything went well. After your baby is borne, the Hospital will give you all the necessary papers so you can get the birth certificate (my advise is take 2 or 3 copies in english and arabicof the birth certificate). You must take this papers altogether with the birth certificate to your Embassy so you can get the baby's passport. Regarding the UAE nationality, well, that's not gonna happen precisely because of all the benefits you mentioned in your post. Too bad isn't it? (I wish I could have got the UAE passport to my son too).
Good luck und congratulations for the baby.