How the UAE defies crises: From financial shocks to Iran's missile attacks
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]Betting against the UAE is a losing wager, a senior UAE diplomat has said, citing the country’s consistent ability to defy scepticism and deliver on its ambitions over the past two decades. “As the UAE navigates one of the hardest moments in its history, it will emerge victorious amidst a complex regional and global landscape. Iran’s egregious drone and missile attacks on the UAE’s civilian infrastructure since February 28 have been met with an interception rate exceeding 90 per cent, proving that even when attacked, the UAE’s defensive capabilities stand strong,” said Dr Mohammed Ibrahim Al Dhaheri, Deputy Director General of the Anwar Gargash Diplomatic Academy (AGDA), in remarks to Khaleej Times.Stay up to date with the latest news. Follow KT on WhatsApp Channels.As of March 23, the UAE has dealt with 1,789 drones, 15 cruise missiles and 352 ballistic missiles launched from Iran. Dr Al Dhaheri said the country’s response to current developments reflects a pattern shaped by previous crises, noting that resilience in the UAE has been tested more than once.Dr Mohammed Ibrahim Al Dhaheri, Deputy Director General of the Anwar Gargash Diplomatic Academy “The global financial crisis of 2008 marked a turning point for Dubai’s rapidly leveraged expansion, prompting financial restructuring and a renewed focus on sustainability. By 2010, Dubai had reduced its debt burden by over 20 per cent and recapitalised key state-owned enterprises, laying the groundwork for more disciplined growth.”A decade later, the Covid-19 pandemic brought aviation, tourism and global mobility to an abrupt halt. “Yet passenger traffic at Dubai International Airport rebounded to over 88 per cent of pre-pandemic levels by 2022, while tourism receipts returned to near-record highs.”Each of these shocks has ultimately “reinforced rather than reversed” the UAE’s trajectory. “The aftermath of the financial crisis brought tighter financial oversight and more disciplined governance, while the pandemic accelerated reforms aimed at attracting global talent, investment and new industries; FDI inflows into the UAE grew by over 12 per cent annually between 2020 and 2023,” said Dr Al Dhaheri.The ongoing attacks by Iran on the UAE have only proven what the UAE has always known: “There is no crisis that the UAE cannot face. Preparedness, strategic foresight and resilience run deep.”Long-term strategyHe attributed the UAE’s resilience to a model built on long-term planning, diversification and institutional strength.“In the early 2000s, oil accounted for more than 70 per cent of the UAE’s total economic activity. By 2024, roughly three quarters of the UAE’s GDP was generated by non-oil sectors,” he said.Trade, logistics, financial services, manufacturing, real estate and tourism now drive most economic activity, supported by national frameworks such as We the UAE 2031 and UAE Centennial 2071, which aim to raise GDP to Dh3 trillion by 2031.He added that the country’s progress is reflected in global rankings, including a fifth-place position in the IMD World Competitiveness Ranking 2025 and a top-10 placement in the Chandler Good Government Index.“These successive gains show that the UAE is not merely appearing in global indexes by chance but is strengthening its institutional performance and competitiveness year after year,” he said.Dr Al Dhaheri added that the UAE will continue to set its own standards and raise the bar with each new initiative, pointing to efforts spanning economic diversification, governance reform, expanded global trade and strengthened diplomatic ties.He said the country has consistently translated ambition into tangible outcomes, with progress measured not by comparison with others but by exceeding the benchmarks it sets for itself.“The lesson is clear: The UAE keeps raising the bar, and the world will take notice.”'Adversity does not break us; it strengthens us': Sheikha Latifa on UAE resilience and unity‘We will never be blackmailed by terrorists’: UAE minister hits back at criticism over US ties
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
Betting against the UAE is a losing wager, a senior UAE diplomat has said, citing the country’s consistent ability to defy scepticism and deliver on its ambitions over the past two decades.
“As the UAE navigates one of the hardest moments in its history, it will emerge victorious amidst a complex regional and global landscape. Iran’s egregious drone and missile attacks on the UAE’s civilian infrastructure since February 28 have been met with an interception rate exceeding 90 per cent, proving that even when attacked, the UAE’s defensive capabilities stand strong,” said Dr Mohammed Ibrahim Al Dhaheri, Deputy Director General of the Anwar Gargash Diplomatic Academy (AGDA), in remarks to Khaleej Times.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
As of March 23, the UAE has dealt with 1,789 drones, 15 cruise missiles and 352 ballistic missiles launched from Iran. Dr Al Dhaheri said the country’s response to current developments reflects a pattern shaped by previous crises, noting that resilience in the UAE has been tested more than once. Dr Mohammed Ibrahim Al Dhaheri, Deputy Director General of the Anwar Gargash Diplomatic Academy
“The global financial crisis of 2008 marked a turning point for Dubai’s rapidly leveraged expansion, prompting financial restructuring and a renewed focus on sustainability. By 2010, Dubai had reduced its debt burden by over 20 per cent and recapitalised key state-owned enterprises, laying the groundwork for more disciplined growth.”
A decade later, the Covid-19 pandemic brought aviation, tourism and global mobility to an abrupt halt. “Yet passenger traffic at Dubai International Airport rebounded to over 88 per cent of pre-pandemic levels by 2022, while tourism receipts returned to near-record highs.”
Each of these shocks has ultimately “reinforced rather than reversed” the UAE’s trajectory.
“The aftermath of the financial crisis brought tighter financial oversight and more disciplined governance, while the pandemic accelerated reforms aimed at attracting global talent, investment and new industries; FDI inflows into the UAE grew by over 12 per cent annually between 2020 and 2023,” said Dr Al Dhaheri.
The ongoing attacks by Iran on the UAE have only proven what the UAE has always known: “There is no crisis that the UAE cannot face. Preparedness, strategic foresight and resilience run deep.”
Long-term strategy
He attributed the UAE’s resilience to a model built on long-term planning, diversification and institutional strength.
“In the early 2000s, oil accounted for more than 70 per cent of the UAE’s total economic activity. By 2024, roughly three quarters of the UAE’s GDP was generated by non-oil sectors,” he said.
Trade, logistics, financial services, manufacturing, real estate and tourism now drive most economic activity, supported by national frameworks such as We the UAE 2031 and UAE Centennial 2071, which aim to raise GDP to Dh3 trillion by 2031.
He added that the country’s progress is reflected in global rankings, including a fifth-place position in the IMD World Competitiveness Ranking 2025 and a top-10 placement in the Chandler Good Government Index.
“These successive gains show that the UAE is not merely appearing in global indexes by chance but is strengthening its institutional performance and competitiveness year after year,” he said.
Dr Al Dhaheri added that the UAE will continue to set its own standards and raise the bar with each new initiative, pointing to efforts spanning economic diversification, governance reform, expanded global trade and strengthened diplomatic ties.
He said the country has consistently translated ambition into tangible outcomes, with progress measured not by comparison with others but by exceeding the benchmarks it sets for itself.
“The lesson is clear: The UAE keeps raising the bar, and the world will take notice.”
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