IMD President David Bach said businesses can adapt to volatile trends more effectively within a stable environment like the UAE.
The UAE continues to be an “island of certainty and stability” for business in an unpredictable and volatile region, according to the president of a leading institution.
David Bach, President of IMD Business School, said that economic volatility—such as US President Donald Trump threatening tariffs one day and resuming operations the next—poses a real challenge for businesses.
Nonetheless, Bach noted that businesses can navigate volatile trends—such as tariffs and geopolitical tensions—more effectively within a stable environment like the UAE, whose position is sustained by a combination of business-friendly policies and regulations.
Earlier this month, US President Donald Trump signed an executive order stating that a 25% additional ad valorem duty “may be imposed on goods imported into the United States” from countries trading with Iran.
On Friday, February 20, the Trump administration withdrew these additional duties imposed under the International Emergency Economic Powers Act, effectively rolling back the tariff mechanism aimed at countries engaged in trade with Iran.
While the national emergency related to Iran remains in place and other sanctions authorities are unaffected, the move ends the collection of the extra tariffs introduced earlier this month.
The UAE, Iran’s largest trading partner, has historic bilateral ties with the country. However, bilateral trade declined due to sanctions imposed on Iran, according to the UAE Ministry of Foreign Affairs.
UAE’s Stability Rooted in Culture, Trade, and Talent
The UAE’s stability is partly due to its culture and history, said David Bach, President of IMD Business School, noting that trading is embedded in the UAE’s “DNA.”
“Dubai is a trading hub. People here have been trading for centuries, initially in the region and then increasingly across the world,” Bach said, adding that this tradition helped the UAE connect globally and develop strong bilateral relations.
Based in Switzerland, IMD Business School specializes in executive education and leadership development. Bach has served as its president since September 1, 2024, after previously holding the position of Dean of Innovation and Programs.
Becoming a successful trading hub goes beyond attracting capital, he said. It requires bringing in human talent and implementing policies that allow them to settle and thrive.
“And as long as that continues, I think there are lots and lots of great opportunities,” Bach added.
Small Nations, Large Pools of Wealth
Some small nations with immense wealth survive and thrive despite surrounding turmoil, Bach argued, citing the UAE alongside Switzerland and Singapore.
“There’s something about relatively small economies with stable governments, good infrastructure, and open global connections that allows them to succeed,” he said.
Echoing this sentiment, Maurice Gravier, Group Chief Investment Officer at Emirates NBD Wealth Management, told Khaleej Times that the UAE’s stability compares with Switzerland.
“If you are diplomatically wise—and there’s no question about the UAE’s prudent policies—you can thrive despite lots of troubles around,” Gravier said.
