From my experience, the no-advertisement claim is untrue. I've used WhatsApp with several users in the UAE. The end-to-end encryption notice appeared on my side (as always in user-to-user communication).
> All chat apps that operate in the UAE need to store data locally with full access given to the UAE's Telecom and Interior Ministries.
Do you have a source for that claim?
Compromised endpoints, monitoring accounts or unencrypted cloud backups are far more likely to be the source than hidden deals or large conspiracies where many people need to keep a secret.