Schengen Visa application while my UAE residence visa will expire before 3 months from the day of departure from the Schengen area

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Actually you don't apply for a specific date (length) on the visa, the length of the visa is determined by the country at which you apply.

Just to give you an example, I had a trip for 5 days, and was given a 30 day visa. My friend, who applied for a week's trip, was given a 3 year visa (we both applied at the same embassy, but for different purposes).

You just indicate the type and the intended length of your stay.

Your residency might be an issue depending on the supporting documents of your stay. Keep in mind that in the end, the main concern is illegal (undocumented) immigration into the area. If you can show sufficient ties back (for example, a letter from your employer confirming the days if your leave, length of employment, etc.) these go a long way.

The other reason they ask for residency validity is to ensure that you will be guaranteed return passage to the country of your departure (otherwise, they might have repatriate you back to the country of your citizenship; also why they ask for a minimum validity on your passport).

In short, the length of your visa is not solely determined by the length of your intended stay or your itinerary.

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