MUDHI ALOBTHANI (ABU DHABI)
From crisis management to strong financial buffers, the UAE has demonstrated it can withstand disruptions and emerge stronger amid ongoing regional challenges, economists and policy experts said during a virtual session organised on Tuesday by the Anwar Gargash Diplomatic Academy (AGDA).
The session, titled “Gulf Economic Resilience: Strategies for Rebound After the War”, explored how Gulf economies can navigate regional uncertainty and strengthen their ability to recover from shocks.
Moderated by Dr Damyana Bakardzhieva, Senior Research Fellow in Economic Diplomacy at AGDA, the discussion underscored the UAE’s institutional preparedness, which has proven critical in maintaining stability.
The UAE, she said, has adopted approaches that enable swift and effective responses during times of crisis.
“Providing the public with timely, transparent and verified information helps minimise panic and allows both nationals and expatriates to continue trusting the authorities’ ability to responsibly steer the country through challenges,” Dr Bakardzhieva said. She also highlighted rapid decision-making and coordination across government entities, led by the National Emergency Crisis and Disaster Management Authority, as central to ensuring continuity.
Economic diversification remains a cornerstone of this resilience, she added. By reducing reliance on hydrocarbons and expanding global trade ties through the Comprehensive Economic Partnership Agreement programme, the UAE has bolstered both its domestic economy and international partnerships.
Dr Bakardzhieva noted that even in prolonged conflict scenarios, a diversified economy such as the UAE’s is likely to experience significantly smaller GDP declines compared to less diversified peers in the region.
Dr Bassem Kamar, Executive Director for Economic Policy at the Arab Monetary Fund and former Chief Economist at the UAE Central Bank, reinforced this view by pointing to the country’s robust financial position and monetary framework.
“The Central Bank has significantly increased its reserves to around $270–$280 billion, covering more than eight months of imports,” he said, adding that this provides a strong cushion to support the dirham’s peg to the US dollar and sustain financial stability
Dr Kamar also highlighted lessons drawn from previous crises, including the COVID-19 pandemic, which enhanced the UAE’s ability to deploy targeted liquidity measures and support key sectors quickly. These fiscal and monetary tools, he said, allow authorities to act decisively without causing market disruptions.
The session also examined efforts to safeguard essential services such as healthcare, energy, and transport. Dr Bakardzhieva pointed to the Abu Dhabi Unified Medical Operations Command Centre (UMOC) and contingency planning by Abu Dhabi National Oil Company as examples of systems designed to ensure uninterrupted service delivery even under severe conditions.
Strategic reserves of food and water, along with initiatives to boost domestic production, further strengthen national preparedness.
Participants concluded that continued diversification, prudent fiscal management, regional cooperation, and investment in local industries will be key to sustaining economic strength. The UAE’s integrated planning and proactive approach, they said, reflect its ability to turn challenges into opportunities while maintaining stability and adapting swiftly to change.