UAE builds competitive advantages despite US policy fluctuations

The United Arab Emirates (UAE) is actively pursuing economic growth opportunities as the United States experiences significant policy shifts. These changes in US political administration have prompted countries worldwide, including the UAE, to prepare for a future that is less dependent on the US. During recent events, UAE officials expressed optimism about US partnerships, particularly after a notable collaboration on artificial intelligence involving a $10 billion investment to foster joint research and technology transfer. However, the country's business climate reflects a strategic pivot, as many exhibitors indicated concerns about the unpredictability of the US markets and policies. In this evolving landscape, fintech companies like amana, founded recently, have emerged to capitalize on strong digital infrastructure and a tech-savvy population. With 20% of amana's user base coming from Lebanon and future growth anticipated in larger emerging markets such as Egypt and Qatar, there is a clear trend towards fostering regional fintech solutions. This signifies the US’s diminishing centrality in global trade for these nations, which are leveraging their strengths to attract business amidst changing US tariffs. The UAE and neighboring countries are expanding their free trade zones to entice businesses affected by the Trump administration's tariffs. By establishing a legal presence in the UAE, companies can circumvent challenging US tariffs while benefiting from government support in financing and manufacturing. This strategy is proving advantageous for businesses seeking access to global markets in regions where barriers have been historically high. Amid this competition for global business, uncertainty surrounding US policies is leading the UAE and its peers to intensify their investments in critical sectors, reinforcing their commitment to growth. As the political landscape in the US remains unpredictable, it is evident that regional players are strategically enhancing their industries and infrastructures, thereby embedding themselves more solidly in the global economy.