How The UAE Maintains Stability, Growth Amid Regional Geopolitical Challenges

The UAE and its Gulf neighbours are located in one of the world's most volatile regions. Yet, by striking a careful balance between opportunity and national security , the UAE has established a global reputation as both a soft power and a hub for investment.

Speaking to Khaleej Times on the sidelines of the recently concluded Mohammed Bin Rashid Leadership Forum, political economist David Bach who's also the president of the IMD Business School, highlighted how the country's resilience and forward-looking vision have distinguished it on the global stage despite ongoing geopolitical challenges .

Bach, an expert on the intersection of politics and business, noted that the UAE's combination of resilience, investment, and talent has created a uniquely stable environment. He also highlighted that the stability the UAE has is structured in a "very different way" compared to other countries.

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He emphasised the nation's clear focus on the future, citing fields such as AI, sustainability, and community development.“They've managed to set politics aside and really focus on creating the most value for the citizens, residents, and communities,” Bach said.

He also described development as a self-reinforcing process.“If you have a critical mass of intellectual talent, more smart people are naturally drawn there. If you have quite a bit of investment in one part of the world, more investment will come there. So, you can keep this cycle going.”

“All the evidence suggests that this region is steadily increasing its leadership and attractiveness - not just because of stability, but because that stability does not breed complacency,” he added.

Bach noted that since the UAE is a constitutional federation, the infrequent changes in leadership give the country an advantage in implementing long-term economic, social, and business strategies. Bach also explained that while governments with shorter terms can still pursue stable economic visions, consistent leadership provides a clearer, more continuous roadmap.

“Policy in many Western democracies changes dramatically with each administration due to rising polarisation,” he observed.“That makes it harder to maintain a long-term vision. In that sense, the UAE's stability is a clear advantage.”

Bach also highlighted the UAE's forward-thinking mindset.“There's always a focus on what comes next - what's needed to attract top talent, capital, entrepreneurs, and foreign direct investment. I think that will continue as long as the ambition remains high and government and the private sector work together,” he said.

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