The world is in a difficult spot. Conflicts, debt crises and more frequent severe climatic events combine for an uncertain outlook for the future of global travel, trade and investment.

The UAE’s economy minister, Abdulla bin Touq Al Marri, has been at the centre of the oil-rich Gulf country’s attempts to lead global debate on issues like climate change and build bridges with different geopolitical blocs in a fractured world. 

In September 2023, the UAE joined an expanded version of the Brics — Brazil, Russia, India, China and South Africa — alongside four other countries. Analysts argue that the UAE’s participation in the new 11-member Brics+ club has given it more capacity to invest and diplomatic leverage. 

“The world needs more platforms for dialogue. The objective is to bring thought leadership, knowledge, know-how and experiences between countries together,” Mr Al Marri told fDi in an interview on the sidelines of the UN World Tourism Organization (UNWTO) 25th General Assembly held from 16-20 October in Samarkand, Uzbekistan. 

“Without dialogue we cannot really activate our policies and be part of the global international domain,” says Mr Al Marri, who adds that joining Brics+ will contribute to the UAE achieving these goals. Some analysts surmise that the 11-nation Brics+ bloc is in a better position than its smaller predecessor to rival the Western-led G7 bloc, which consists of Canada, France, Germany, Italy, Japan, the UK, the US and the EU.

The UAE has also been more active in creating bilateral trade corridors where contracts are settled in non-dollar currencies. This is epitomised by the comprehensive economic partnership agreements it has signed with seven countries, including India.

“I don’t think there is a worry [about] the US dollar, not in my lifetime,” says Mr Al Marri. “The trading between UAE and India in rupees and dirhams makes it much easier for trade flows to go forward.”

Cop28 preparations

A major tourism boost is expected in the UAE from the 28th Conference of Parties (Cop28), the UN’s annual climate change conference being held in Dubai in November. However, Amnesty International has criticised the UAE for its priority at Cop28 appearing to be to “massage its own reputation” and “greenwash its fossil fuel expansion plans” at a time of an escalating climate crisis.

“Climate change is not new for the UAE,” replies Mr Al Marri, who notes that Abu Dhabi’s state-owned company Masdar has developed and invested in renewable energy projects since 2006. He says that the UAE is “spearheading discussions” on reaching net-zero carbon emissions in what he describes as “holding the bull from the horn”. 

Masdar is among the top 10 most active renewables investors globally, having pledged $18.6bn to overseas greenfield projects since 2006, according to fDi Markets. Masdar has already announced 11 FDI projects this year in various countries in sub-Saharan Africa, Central Asia and eastern Europe.

However, despite the UAE’s goal to reach net-zero by 2050 it lags behind other countries in its renewables rollout at home. In 2022, renewables generated 4.5% of the country’s electricity, ahead of Saudi Arabia’s 1.1% but still well behind the global average of 30%, according to Enerdata.

Mr Al Marri stresses that Cop28 will be focused on filling the massive gap in sustainable investment globally. The UAE has committed to a $100bn green fund with the US to accelerate the energy transition in countries around the world.

“I think this capital will be a huge platform for the energy transition,” says Mr Al Marri.

Global headwinds

Since taking his post in June 2020, Mr Al Marri helped instigate policies to keep people in the UAE safe from Covid-19, a $100bn support package for the economy and a reopening to international travellers. 

“There was no playbook for the pandemic,” he says. Now, he stresses that the “challenges facing travel and tourism are different from 2019”, citing higher fees for tourists, worsening climate change and geopolitical tensions as examples.

“It is important we keep an eye on these headwinds,” he says, adding that the pandemic and other global challenges has taught the UAE “to be more agile and dynamic” with its tourism policies.

This included the UAE’s first federal tourism promotion strategy, called The World’s Coolest Winter, which has encouraged domestic tourism between the seven distinct emirates.

In the face of a multitude of challenges, Mr Al Marri is confident in the opportunities the tourism industry offers the UAE. The Middle East is the only global region to have already surpassed its pre-pandemic levels of international arrivals, according to UNWTO. 

Mr Al Marri says the UAE would like to increase tourism’s gross domestic product contribution from 13% today to at least 17% by 2030, as well as attract more than $100bn worth of investments.

“With that said, we need to keep an eye on how geoeconomics and geopolitics [develops] globally,” he adds. 

So is he concerned about potential spillover from the latest conflict between Israel and Hamas in the Gaza Strip and its potentially negative affect on tourism into the Middle East?

“I’m not worried about that,” he says. “The opportunity here is how the UAE can really make sure tourism globally is an active player and we connect people together.” 

One example of this is shown at the regional level. In September, the Gulf Co-operation Council (GCC) discussed the potential of setting up a Schengen-style visa system across the six GCC countries. Mr Al Marri says that GCC leaders could approve a regional visa system as early as this December.