OBJECTIVES: This study aimed to estimate the proportion of patients with diabetes who achieved target glycemic control, identify factors associated with poor glycemic control, estimate diabetes-related costs attributable, and examine characteristics associated with diabetes-related costs in the United Arab Emirates. METHODS: This retrospective cohort study used administrative claims data (January 2010 to June 2012) to determine glycemic control (hemoglobin A1c [HbA1c] <7.0% in the 1-year follow-up period) and diabetes-related costs. Factors associated with glycemic control were investigated using multivariable logistic regression. Factors associated with diabetes-related costs were determined using a generalized linear model. RESULTS: During the 1-year follow-up period, 46.6% of the patients achieved HbA1c <7%. Older age, female sex, better insurance coverage, non-use of insulin in the index diagnosis month, and non-use of antidiabetic medications during the follow-up period were significantly associated with improved glycemic control. The mean diabetes-related annual costs were $2,235 and $2,613 for patients with and without glycemic control, respectively, and the cost attributable to poor glycemic control was $168 ([CI], $160–177). The diabetes-related costs were lower with mean HbA1c levels <7% (cost ratio, 0.91; CI, 0.88–0.99; p < 0.05). The costs were significantly higher in ≥65-year-olds than <44-year-olds (cost ratio, 1.45; CI, 1.25–1.70; p < 0.001). CONCLUSIONS: More than 50% of diabetic patients had poorly controlled HbA1c. Diabetes-related costs were higher with poor control, and the difference was significantly higher with older age.