Will Trump tariffs impact UAE economy? Officials 'confident' of navigating global trade war
UAE officials said it is too early to gauge the impact of the global tariff war and that they're 'monitoring the situation closely.' However, they are hopeful and confident of navigating the impact of this new crisis.
They pointed out that there might be some trade flow shifts and urged putting in place a system that can help cargo and aviation industries deal with these kinds of challenges.
Badr Abbas, division senior vice president of Emirates SkyCargo, said the industry has 'faced significant disruptions, making resilience and adaptability top concerns' in recent years.
'This continues as we navigate various global trade headwinds, including tariffs. We won't speculate on the impact of tariffs on global trade just yet, but our collective focus as an industry needs to be on building systems that can withstand future shocks, whether geopolitical, economic or environmental,' Abbas said during a speech at the three-day World Cargo Symposium which began at the Dubai World Trade Centre on Tuesday.
The US has imposed heavy tariffs on many countries across the globe, especially China. As a result, many countries also hiked tariffs on US goods, prompting concerns in the markets across the globe. The tariff war led to a sell-off in the stock markets and pushed gold prices to an all-time high due to concern about its impact on the global economy and recession fears.
'It is too early to speculate on the impact of tariff war. We remain agile and resilient. We view disruption as an opportunity to innovate and remain confident of long-term growth. Demand for our products and services remains high even today. We will continue to monitor the situation closely and adopt swiftly as needed. The US continues to be a strong market for us. We are operating at full capacity as we speak,' Abbas said during a press conference.
'Dubai offers unparalleled access to dynamic economies. Our city's location enables air transporters like us to seamlessly reach two-thirds of the world's population within an eight-hour flight. Dubai's progressive aviation policies mean over 100 airlines operate here, providing an extensive web of air transport options for goods and people to flow through this global trading hub,' he said.
As part of the Dubai Economic Agenda (D33), a path has been laid for the city to become a top five multimodel global logistics hub, excelling in connectivity, services and operations. 'Dubai is where the future happens. For Emirates Skycargo, the opportunity is there. We believe that the next decade will be transformative for our industry.'
Abdulla Bin Touq Al Marri, UAE's Minister of Economy, said the industry today stands at the crossroads. 'On one hand, we're seeing the sector expanding rapidly, driven by surging e-commerce, increasing demand for just-in-time logistics and new markets. On the other hand, we face conflicts of global challenges, geopolitical volatility and tightening regulations. And most recently, the global tariff conflict. The numbers reflect both opportunity and responsibility,' Al Marri said during the opening speech at the Symposium.
Trade flows shifting
Clive Sauvé-Hopkins, CEO of airport operations, dnata, said there is no change in the situation for the ground handling company due to the global tariffs conflict. 'We position ourselves when markets change. We have a global reach with 99 airports across the world in some of the key hubs. We will see some trade flow shifts; we will see where and adopt accordingly,' he added.
Dnata on Tuesday said it reached a significant milestone, handling over 1 million tonnes of cargo in Dubai between April 2024 and March 2025 – the highest volume ever processed by the company in 12 months.
The record reflects a 30 per cent year-on-year increase, driven by strong demand for dnata's reliable, high-quality services. Operating from both Dubai International (DXB) and Al Maktoum – Dubai World Central (DWC) airports, dnata currently serves more than 120 airline customers, managing a broad range of cargo, including perishables, pharmaceuticals, dangerous goods, live animals, aircraft engines and vehicles.
Willie Walsh, Director-General of the International Air Transport Association (Iata), said it is 'far too early to predict' the impact of tariffs as US President Donald Trump's administration reassesses their trade to manage the trade deficit they have identified.
"I remain confident that our industry will manage through the crisis," he said during a media briefing on Tuesday.
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