UAE has what it takes to withstand future shocks, says renowned economist

Renowned economist Mohamed El-Erian, chief economic adviser at Allianz, has praised the UAE's ability to withstand future shocks. Speaking at an event organized by the UAE Ministry of Foreign Affairs during the UN General Assembly in New York, El-Erian commended the country's handling of the ongoing regional conflict that has disrupted global energy supplies and trade.

According to a recent World Economic Forum survey, the conflict in the Middle East, now in its seventh month, poses a significant risk and could create major economic headwinds in the coming year. While the broader Middle East and North Africa region is among the most vulnerable to future shocks, the UAE's prospects are different.

El-Erian highlighted three key attributes that have enabled the UAE to navigate the recent turbulence successfully: resilience, optionality, and agility. The country has shown resilience by quickly recovering from shocks and continuing forward progress. It has demonstrated optionality through an open-minded approach that leverages expertise from various sources. Additionally, the UAE has exhibited agility by swiftly adapting to changing circumstances.

Despite the global energy shock and economic slowdown caused by the conflict, the UAE's non-oil private sector has bounced back, with business activity reaching its fastest pace since December 2024 in August. The country is now focused not only on maintaining momentum but also on accelerating growth.

UAE Special Envoy for Business and Philanthropy, Badr Jafar, emphasized that the nation's economic resilience and strength are grounded in strong fundamentals, global connectivity, and institutional depth. He noted that the UAE's approach during this turbulent year, which involves keeping goods, capital, and people moving while maintaining openness and connectivity, reflects its inherent character.