How Dubai’s Economy and Tourism Thrives Through Global Instability

2023 was a remarkable year for Dubai with record figures, but 2024 was even better, with a 9% increase in visitation.

Dubai seems confident about its ability to handle every global economic challenge and a looming possible recession, despite everyone ‘fearing’ tariffs and either giving reciprocal tariffs or obliging to Trump’s tariffs. However, Dubai is confident that the city has established a position, has diversified offerings, and has intrinsic adaptability.

Issam Kazim, the CEO of Dubai Corporation for Tourism and Commerce Marketing (Dubai Tourism), acknowledged that the global economy is interdependent but stressed that Dubai is resilient.

Kazim believes that Dubai provides diversified offerings, so it has the strength to handle the uncertainty of the trade war. Dubai is moving away from relying on oil and expanding into tourism, finance, real estate, healthcare, and technology.

The head of tourism confirmed that Dubai Tourism has grown 3% compared to the previous year in Q1 2025.  

He added that 2023 was already a remarkable year for Dubai with record figures, but 2024 was even better, with a 9% increase in visitation. It has almost 18.72 million overnight visitors. Kazim explained that they are already ahead by 3% in the first quarter, which means they will keep raising their benchmark.

The ongoing trade war between the US and China has affected almost all countries, with markets crashing. The United Arab Emirates (UAE) is no exception.

The share prices of many hospitality groups, like the InterContinental Hotels Group (IHG), declined. In the previous month, IHG shares declined to almost 7.9%.

Kazim noted that some industries are affected more compared to others by the trade war and its economic pressures, but travel will remain constant since it is needed for business and leisure purposes.

However, one must not ignore the possibility of changes in travel patterns. Some individuals might choose fewer or shorter trips or potentially extend their stay.  

But Kazim is optimistic about navigating this situation and coming out of the other side of the tunnel by focusing on traveling parties.

He added that Dubai has a private and public sector connection, which will help Dubai to make rapid adjustments and navigate the unpredictable global environment.

Haitham Mattar, Managing Director at IHG Hotels and Resorts, stated that everyone is currently figuring out how to navigate this global uncertainty, and Dubai is also experiencing the same and is in a period of adjustment.

He added that it is too soon to say how the global trade war will affect Dubai.

Recently, the Trump administration prepared a ‘list’ of countries banned from traveling to the US because of the fear of security risks. Regarding the demand for travel to the US, Adnan Kazim, Chief Commercial Officer of Emirates, said that he is seeing solid bookings, and there has been no dip until now.

However, it is uncertain whether travel might be affected in the future by the ongoing tariffs and strict visa policies in the US.

He added that despite facing economic uncertainties, currency fluctuations, and other challenges, the overall travel booking from May through winter has a positive graph across the network, surpassing last year’s performance.

Kazim stated that this is not the first time they have faced disruption. The airline industry has a history of facing disruptions from geopolitical issues to economic downturns. But all the challenges have made them stronger. The airline industry is ready and adaptable to handle all the challenges with its history of managing it, especially since it is even more optimistic with the ongoing positive trend.

He observed that the upcoming financial statements for Emirates will show resilience, and current forward bookings, including those for May and beyond, are showing a positive trend, surpassing last year’s figures in some instances.

Kazim even proposed that any potential changes in travel patterns would only unintentionally benefit Dubai since many global companies still view Dubai as a hub for their regional offices.