Renowned Economist Mohamed El-Erian Praises UAE's Resilience Against Future Economic Shocks

The UAE possesses the necessary tools to successfully navigate ongoing turbulence, according to Allianz chief economic adviser Mohamed El-Erian. Speaking at an event organized by the UAE Ministry of Foreign Affairs on the sidelines of the UN General Assembly in New York, Mr El-Erian commended the nation for its effective management of the regional conflict that has severely disrupted global energy supplies, commodities trade, and commerce.

A recent survey by the World Economic Forum highlights that the war in the Middle East, now in its seventh month, remains a major concern capable of generating serious economic headwinds over the next 12 months. While the broader Middle East and North Africa region ranks among the most vulnerable areas regarding resilience to future shocks, the outlook for the UAE stands apart.

“The UAE has navigated the turbulent period we have seen this year remarkably well and has the attributes to navigate what lies ahead successfully,” stated Mr El-Erian. He highlighted three key attributes that have shielded the UAE from uncertainty: resilience, optionality, and agility.

“The UAE has demonstrated all three,” Mr El-Erian explained during the discussion. “It has shown resilience by absorbing shocks, recovering quickly, and continuing to move forward. It has demonstrated optionality through an open-minded approach that draws on expertise wherever it can be found. And it has also shown agility by moving quickly and adapting to changing circumstances.”

Although the Middle East conflict has triggered a global energy shock and economic slowdown, the UAE's non-oil private sector continues to recover. Business activity reached its fastest pace since December 2024 in August as local companies successfully absorbed the fallout from the war. Badr Jafar, the UAE Special Envoy for Business and Philanthropy, noted that the country is now focused “not simply on maintaining momentum, but on accelerating it.” He emphasized that this economic strength is firmly “grounded in strong fundamentals, global connectivity and institutional depth.”

“Everything discussed here today signals the approach that the UAE has already chosen, to remain open and connected when the world chooses to turn inward,” Mr Jafar added, emphasizing the nation's commitment to maintaining the flow of goods, capital, and people despite regional instability.