The correct answer to this question is Yes. Hinduism is allowed in Dubai, but there are limitations to what Hindus can do. One of the limitations is in regards to how they worship. Hindus are allowed to worship, but they are not allowed to build temples in Dubai to worship in.
This is the main stipulation, as Hindus are able to do just about anything else, such as work and gain an education. However, they are not allowed to build temples. Along with that Hindus are not allowed to have outside ceremonies. They must be inside and if outside, they must gain permission to have it.
Hinduism is allowed in Dubai. But, there are stipulations. Hindus are not permitted to build temples, but they can worship. They Hindus can live there, work there, study there, visit there, and do most everything except they cannot build temples there.
Their ceremonies have to be held inside as well. They have to request permission to have any outdoor activity. Some think it is racism or not having freedom of religion, and that may be true be it is what it is, and they are not concerned with what others think about it. It is their country.