Tuesday, 02 January 2024 12:17 GMT

'Focus Not Just On Recovery': UAE Plans Strategy To Stay Ahead Of Global Shocks


(MENAFN- Khaleej Times)

As geopolitical uncertainties persist, officials agreed that the UAE's robust infrastructure and proactive policymaking will continue to underpin its ability to navigate disruption
    By: Arwa Almazrouei

    [Editor's Note: Follow the Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]

    Two months into heightened regional disruption, the UAE is leaning on decades of strategic planning, infrastructure investment and policy agility to safeguard supply chains and maintain strong economic momentum, senior officials said during a high-level panel discussion.

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    Speaking at the session moderated by Hadley Gamble, Suhail Mohamed Al Mazrouei, UAE's Minister of Energy and Infrastructure, underscored that stability in global energy flows remains central to economic resilience.

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    “The biggest concern today is ensuring the security of shipping routes,” he said, stressing the importance of keeping critical chokepoints, particularly the Strait of Hormuz open and secure. Any disruption, he warned, risks triggering global supply shocks that disproportionately impact vulnerable economies.

    Mazrouei added that beyond meeting immediate demand, the world now faces a second challenge - replenishing depleted strategic reserves.“The world will need more energy not just for consumption, but to rebuild inventories,” he said, noting that responsible production will be key to balancing both priorities without destabilising markets.

    On the trade front, Thani bin Ahmed Al Zeyoudi, UAE's Minister of Foreign Trade, highlighted the UAE's ability to maintain growth despite external shocks. The country surpassed $1 trillion in trade last year, with continued expansion in the first quarter of 2026.

    “This resilience reflects long-term investments in ports, aviation, and logistics,” Al Zeyoudi said, noting that the UAE is now connected to more than 250 ports globally and operates hundreds of vessels through national entities.

    He added that swift operational shifts, including rerouting cargo and scaling up air freight, helped mitigate the impact of disruptions.“We were able to move quickly because we plan for multiple scenarios,” he said, pointing to double-digit growth in some aviation segments during peak disruption periods.

    The UAE's logistics backbone, combined with integrated transport networks and trade agreements, has enabled the country to maintain the steady flow of essential goods while keeping prices stable.

    Looking ahead, Al Zeyoudi confirmed that both sovereign and government-led investments will continue to prioritise infrastructure and strategic sectors, alongside efforts to deepen international partnerships and boost domestic production.

    Meanwhile, Faisal Al Bannai, Chairman of EDGE Group, pointed to rapid advancements in local industrial and defence capabilities as another pillar of resilience. He revealed that technologies developed within the UAE played a decisive role in neutralising threats during recent attacks, with locally produced systems deployed in real-time operations.

    “What used to take two years to develop can now be delivered in weeks,” Al Bannai said, signalling a sharp acceleration in innovation cycles and local manufacturing capacity.

    As geopolitical uncertainties persist, officials agreed that the UAE's diversified economy, robust infrastructure and proactive policymaking will continue to underpin its ability to navigate disruption.

    “The focus now is not just on recovery,” Mazrouei said,“but on building a system that is stronger, more flexible, and ready for whatever comes next.”

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