The rapid extreme economic evolution of the United Arab Emirates (UAE) has followed in giant power plans. Numbers have revealed that, two years ago, the total electricity consumption in the UAE was more than to thousand GWH, which reflected an increase of 1.5% compared to previous records by using the standard model of electricity generation. Governments have realized a necessity for updating the electric energy system and creating such Smart Grids around the planet. UAE set various guidelines and tactics matching with the recent sustainable international projects in terms of decreasing energy consumption and gas emissions. Currently, green energy and new technology assisted to reduce these matters. The Smart Grid System (SGS) is a combination between the connected networks and the technological era, which provides several methods to produce power from several sources. Currently, the energy production witnessed a huge interest in SGS in UAE. Most likely, SGs implementation problems are different from one area to another as each place has its own nature and economic circumstances. This paper highlights the UAE challenges in smart grid development policies and explores the smart grid plans to determine creation difficulties in the UAE. A focused study has been applied, where significant factors were reviewed and analyzed as well as a questionnaire survey and interviews with specialists from diverse settings. To determine the aids and drawbacks, four main features of SGS will be considered nature, sponsor support, government responsibility, and marketplace expansion.