Oh the irony.
Lesson of the Story - If a country feels the need to tell you how democratic it is in its name, chances are it's got something to hide ;0)
Checking Wikipedia, the emirs of the participant states are absolute rulers; the parliament is only half elected, half appointed, and serves only an advisory role.
As to which country is the freeest country in the Middle East, that depends on what exactly you mean by Middle East. But if we discount Israel (36th most democratic out of 167 with 7.63 points) and Turkey (98th with 5.12),on this list the most democratic one is Lebanon (also 98th), followed by Palestine (106), Iraq (111), Kuwait (120) and Jordan (121). On the Arabian peninsula, Qatar scores highest, but even that would come on this list if it were extended with only 12 countries.