UAE’s diversification process on track as non-oil trade peaks

Peace is an investment in these troubled times, and the country has invested widely and wisely in the cause of the virtue that is in short supply

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Published: Mon 22 Aug 2022, 11:11 PM

The pandemic and a weak global economic recovery have not hampered the UAE’s growth story as it races ahead of other major economies. It is clear that the country’s diversification away from oil that began more than five years ago is bearing fruit.

The non-oil figures released on Monday by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, is testament to robust growth. It proves that the country has weathered multiple storms following the health crisis that may finally be petering out after two years.

According to numbers released by the government, non-oil trade jumped 17 per cent to Dh1.06 trillion in the first half of the year when compared to 2021. While it’s true that the UAE also benefited from high oil prices, these numbers are an indication that the country’s investments in other sectors of the economy are paying off and the recovery post the pandemic is sustainable.

An unstable regional environment and the war in Ukraine may have pushed back early gains but the UAE remains on track to meet its development goals. The country’s soft power status has helped tide over a bleak global situation as its relationship with its neighbours and the world at large is witnessing a transformation that bodes well for the future.

Why has the UAE succeeded even as others struggle to find their feet after this crisis?

The answer lies in its forging and nurturing partnerships with friends and foes alike, in the best and worst of times, the Abraham Accords being one such example. Peace with Israel was once unthinkable for Arab countries, but the UAE broke with convention when it saw an opening during the worst months of the pandemic.

History was made and that has led to agreements in the economic space with more countries like India and South Korea. Twenty-seven bilateral agreements are in the works as the UAE writes its unique economic success story. The strategy has worked wonders as we look at the larger economic picture that shows high inflation globally that could lead to a recession in the short term.

Indeed, peace is an investment in these troubled times, and the UAE has invested widely and wisely in the cause of the virtue that is in short supply.

The leadership believes that differences should not be allowed to derail relationships that have been built over the years. Glossing over the negatives is not what the country does, it acts to create opportunities for stronger ties.

Recently, it appointed an envoy to Iran. “Once again, the UAE has proven to the world the recovery of international trade after the most difficult pandemic that humanity has gone through,” Sheikh Mohammed said.

It has taken courage and conviction to see through the conflicts and crises while ushering in a new dawn of cooperation. The naysayers have again been silenced.

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