UAE’s Domestic Economy Remains Strong Despite Tourism Slowdown, Says Minister

UAE Economy Remains Resilient Despite Tourism Slowdown

The UAE’s domestic economy continues to show resilience despite challenges impacting the tourism sector, according to Abdullah Bin Touq Al Marri, the UAE Minister of Economy and Tourism.

Speaking at the third edition of the Economy Middle East Summit, held in partnership with Abu Dhabi Global Market, the Minister said the country remains focused on long-term structural growth while navigating the effects of regional conflicts and economic uncertainty.

Tourism Slowdown Not Affecting Overall Domestic Demand

Al Marri explained that although some sectors have experienced slower recovery than others, the decline in spending was mainly linked to reduced tourism activity rather than a broader collapse in domestic demand.

He noted that the UAE does not require a completely new economic model, but instead needs to strengthen the key drivers that already support growth.

These include attracting global talent, improving supply chains, and increasing access to growth capital.

Economic Diversification Strengthens UAE Stability

The Minister highlighted the importance of economic diversification in helping the UAE manage geopolitical and economic shocks more effectively than many developing nations.

Non-oil sectors now contribute more than 77 percent of the country’s GDP, helping maintain economic stability during difficult periods.

UAE Focuses on Three Key Priorities

According to Al Marri, the UAE’s economic response has focused on three major priorities:

• Ensuring business continuity

• Maintaining market confidence

• Continuing long-term development plans despite regional challenges

He stressed that the country is not slowing down its ambitions because of current geopolitical tensions.

Instead, the government continues to push reforms, accelerate economic initiatives, and encourage investment into sectors that improve resilience and create sustainable long-term value.

Businesses Advised to Strengthen Supply Chains

The Minister also described the current period as one of the most challenging moments the region has faced in decades.

He said maintaining security, continuity, and confidence remains essential for economic stability.

Businesses were advised to diversify supply chains, improve logistics planning, and move away from overdependence on just-in-time operational models in critical sectors.

Government Aims to Maintain Fair and Stable Markets

Al Marri also spoke about the government’s efforts to maintain fair market conditions and keep prices stable despite increasing energy and logistics costs affecting businesses globally.

He acknowledged that many companies continue to face genuine operational pressures, but emphasized that the government’s objective is to ensure markets remain balanced, reliable, and trustworthy rather than heavily restricting economic activity.