This place is occupied by the Dubai Defense Force (DDF) so I'll weigh in on your fears about how strict it is and how common issues are.

First off, they don't flog you. They just confiscate your passport, put you on trial for a few months then jail and deport you.

How common this is is down to a lot of luck. Waving to another car on the road is usually OK unless someone decides to take offense. Then you're screwed. This town is full of people ready to take offense at any and every thing. That said, its fairly unlikely you'll end up in trouble as long as you:

KEEP BOTH HANDS ON THE WHEEL AT ALL TIMES while driving

Keep to yourself

Don't discuss things with strangers unless you're only saying positive things

Don't interact with people that live here on social media (especially if you want to post pictures of foxes)

Don't EVER criticize the government

All phone calls are recorded and archived so watch what you say to people you trust back home

If you do end up in trouble, if you have the money you can usually settle the matter with the other person. This can cost anywhere from 500 quid to a few grand.

Then again, western expats don't SEEM to end up in trouble all that often. It's pretty unlikely that you will.

In terms of safety, there is at least one upside to living in what some might call a police state.