UAE An 'Island Of Certainty, Stability In Uncertain, Volatile World', Says Top Economist

2026-02-22 11:15:31

(MENAFN- Khaleej Times)

President of IMD David Bach says businesses can attempt to adjust to volatile trends within a stable environment like the UAE

PUBLISHED: Mon 23 Feb 2026, 5:00 AM

By:
Hind Aldah

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The UAE remains an“island of certainty and stability” for doing business in an unpredictable and volatile region, the president of a leading institution said.

Economic volatility - such as US President Donald Trump threatening tariffs one day and resuming operations the next - becomes“a real challenge for business,” David Bach, President of IMD Business School, told Khaleej Times.

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Nonetheless, Bach said businesses can attempt to adjust to these volatile trends, such as tariff impositions and geopolitical tensions, within a stable environment like the UAE, which has maintained this position due to a combination of business-friendly policies and regulations.

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Earlier this month, Trump signed an executive order stating a 25 per cent an additional ad valorem rate of duty“may be imposed on goods imported into the United States” from countries that do business with Iran.

This Friday (20 February), the Trump administration withdrew the additional ad valorem duties imposed under the International Emergency Economic Powers Act, rolling back the tariff mechanism aimed at countries engaged in trade with Iran.

While the national emergency related to Iran remains in place and other sanctions authorities are unaffected, the move ends the collection of the extra tariffs introduced earlier this month.

The UAE is Iran's largest trading partner, and bilateral relations between the two nations reveal its historic ties. However, bilateral trade was reduced“as a result of sanction imposed on Iran,” the UAE Ministry of Foreign Affairs said in its website.

'Trading in UAE's DNA'

Stability is, in part, due to the UAE's culture and history, he said, adding that trading is embedded into the UAE's“DNA.”

“Dubai is a trading hub. People here have been trading for centuries, initially in the region and then increasingly across,” Bach said, adding that this allowed it to connect with other regions and develop bilateral relations.

Based in Switzerland, IMD Business School is described as specialising in executive education and leadership development. Bach has been serving as its President since September 1, 2024, having previously served as the school's Dean of Innovation and Programs.

Becoming a successful trading hub goes beyond attracting capital, Bach said, and involves bringing more human talent into the mix and setting policies in place that allow them to anchor themselves.

“And as long as that continues,” the IMD President added,“I think there are lots and lots of great opportunities.”

Small nations, large pools of wealth

Some small nations with immense wealth survive despite the turmoil surrounding them, argued Bach, citing the UAE as one of them. He drew comparisons with Switzerland and Singapore, both relatively small countries by land mass but with big swaths of wealth.

“There's something about fairly small economies with fairly small populations that have stable government, good infrastructure, and that manage to open themselves up and connect globally.”

A top economist echoed the sentiments, telling Khaleej Times earlier this month how the UAE's stability compares with Switzerland.“If you are diplomatically wise, and there's no question about the wise policies of the UAE, you can thrive despite having lots of troubles around,” Maurice Gravier, group chief investment officer at Emirates NBD Wealth Management, said.