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Dubai's economic model can withstand external shocks, say top businessmen
UAE’s strong financial position, institutional readiness, and culture of confidence and stability are important factors that continue to reinforce trust among residents and investors, say businessmen
- PUBLISHED: Sun 29 Mar 2026, 4:26 PM
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Dubai has built one of the world’s most dynamic, competitive, and resilient ecosystems to withstand external shocks, top industry executives said.
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Be it the 2008-09 financial crisis, the Covid-19 pandemic, or any other regional military conflict, Dubai has always emerged stronger because of the role that public-private partnerships have played in the development of the emirate, said officials from various sectors – including hospitality, travel and tourism, MICE, and other industries.
Mohamed Jassim Al Rais, honorary chairman of the Dubai Travel and Tour Agents Business Group, said the city’s economic model has repeatedly demonstrated exceptional resilience because it is built on diversification and strong integration between key sectors, including trade, tourism, aviation, logistics, finance, and technology.
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“One of Dubai’s greatest strengths is the speed and decisiveness of its leadership, combined with a governance model that prioritises collaboration with the private sector. In the travel and tourism sector, this partnership has been particularly evident. Continued coordination between government authorities, airlines, airports, hospitality groups, and tourism stakeholders ensures that Dubai remains operational and welcoming to the world,” Al Rais said.
Despite the ongoing military conflict involving the US, Israel, and Iran, businesses in the UAE believe that the country’s large sovereign wealth funds and decades-long diversification away from the petrodollar will help absorb external shocks and enable faster recovery than other economies.
Businesses flexible, adapt quickly
Ajay Bhojwani, president of The Events Group, said Dubai’s diversified economy has created strong foundations for the meetings, incentives, conferences, and exhibitions sector, ensuring an environment conducive to sustainable growth.
He added that firms in the sector have moved quickly to adopt flexible solutions to maintain continuity, including rescheduling events and expanding virtual engagement. He stressed that Dubai’s economy is widely recognised for its resilience and adaptability, particularly amid continuing global uncertainty.
He said: “Government initiatives under the Dubai Economic Agenda D33 continue to drive long-term growth by attracting international investment, supporting innovation, and expanding trade. At the same time, world-class infrastructure and connectivity through hubs like the Dubai World Trade Centre, a wide range of hotels, and Emirates airline reinforce Dubai’s position as a leading destination for global events and business gatherings.”
Bhojwani also emphasised that the strong partnership between the public and private sectors has helped the industry recover from previous disruptions while supporting the growth of successful homegrown events.
Amit Nayak, chairman of the Dubai Hotels Business Group and vice-chairman of the UAE Restaurants Business Group, said the emirate’s tourism and hospitality sector entered the current period from a position of strength, supported by robust visitor demand, strong connectivity, and a citywide ability to respond quickly and effectively to disruption.
He noted that the sector has continued to adapt by prioritising service quality and long-term destination value.
“Dubai’s economic model is resilient because it is diversified, execution-led, and built for speed. Hotels have stepped up, supporting travellers, extending flexibility, and maintaining high service standards for residents and visitors alike. Restaurants and the wider visitor economy have adapted quickly, focusing on value, consistency, and guest experience,” he said.
Overcoming challenges
Mania Merrikhi, chairwoman of the Real Estate Valuation Business Group, said the local economy is underpinned by diversification and a proactive government approach.
“Dubai has consistently demonstrated its ability to overcome major global challenges. The emirate has managed these moments with remarkable efficiency and optimism. One of the most unique strengths of Dubai and the UAE is the close connection between leadership and the community. This unity creates a strong sense of stability and trust in the future,” she added.
Bushra Khan, chairwoman of the Education Business Group, said Dubai has built one of the world’s most competitive private education ecosystems, with a diverse range of schools and curricula.
“The emirate has developed a highly diversified, globally connected economy supported by visionary leadership, strong institutions, and a regulatory environment that actively encourages private sector participation and innovation. One of Dubai’s greatest strengths is the close and constructive partnership between the government and the private sector.
“Policymakers maintain an open dialogue with industry stakeholders, while regulators demonstrate agility and foresight in responding to evolving economic and societal needs. This collaborative approach creates a stable and predictable environment that encourages long-term investment and sustainable growth,” she added.
Withstanding external shocks
Mohd Kenanah, chairman of the Medical Equipment Business Group, said Dubai’s economy has maintained its resilience amid ongoing regional issues, as the city’s economic model has historically been built to withstand precisely these kinds of external shocks.
“The emirate’s strength lies in its highly diversified and globally integrated economy.”
Kenanah highlighted the resilience of the healthcare sector, noting continued strong demand for advanced healthcare infrastructure, digital health technologies, and integrated care solutions.
He added: “A defining characteristic of Dubai’s success is the close partnership between the public and private sectors. Public-private collaboration has been instrumental in advancing sectors such as healthcare, technology, and infrastructure. For business leaders operating in the UAE, this environment provides reassurance that Dubai remains not only resilient in the face of global challenges but also uniquely positioned to emerge stronger through innovation, collaboration, and strategic foresight.”
Kenanah also pointed to the UAE’s strong financial position, institutional readiness, and culture of confidence and stability as key factors reinforcing trust among residents, investors, and the wider business community.
Hoda Barakat, chairwoman of the Dubai Business Group for Intellectual Property, said Dubai has consistently emerged stronger from global challenges due to its diversified and future-oriented economy, investor-friendly environment, and strong ability to adapt quickly to changing conditions. She added that businesses continue to show confidence in Dubai and maintain operations despite current regional challenges.
Redha Al Mansouri, chairman of the Fruit and Vegetable Traders Business Group, said Dubai continues to demonstrate the strength and adaptability of its economy.
Al Mansouri said: “Dubai has consistently shown that its economy is strong and able to adapt to changing global conditions. Even during times of global uncertainty, the emirate continues to maintain solid growth thanks to its diversified economy, modern infrastructure, and open trade environment.”
