As long as the United Arab Emirates’ free trade zones continue to draw in enterprises, Dubai’s business leaders anticipate surviving the storm of US President Donald Trump’s global tariffs.

Countries are rushing to sign new trade deals to lessen the impact of Mr. Trump’s worldwide tariff increase and the strengthening of his trade war against China. This will result in higher export prices to the US and a possible flood of excess Chinese goods.

Ahmed Bin Sulayem, CEO of the Dubai Multi Commodities Centre, a commodities exchange and free trade zone, is optimistic about their future growth, especially in the software sectors of gaming, AI, and cryptocurrency.  

He stated, “Innovation is being harnessed in Dubai to position the city as a global hub for AI and Web3” during a Tuesday event at London’s Asia House that invited UK businesses to establish a headquarters at the DMCC.

Mr. Sulayem stated that the production of diamond semiconductor wafers should be the primary emphasis of the lab-grown diamond business, which is another avenue for expansion. He said, “Diamond wafers are the real business and the money.”  

According to an FT story on Tuesday, he cited the Gemological Institute of America’s recent announcement that it would strengthen its international services “specifically in Dubai and Hong Kong” in response to the new 10% tax on diamond imports.

According to Amal Larhlid, a partner at PwC Middle East who consults governments on sustainability, the new tariffs are an “opportunity” for the UAE to draw in more companies. She said the tariffs would help attract more companies into the ecosystem.

She stated that the UAE would attract new enterprises due to its diversification away from oil and its expanding trade with eastern nations. She added that the UAE offered “political stability” and an emphasis on long-term planning, so it is doubtful that taxes and tariffs would change significantly. 

“Business is killed by uncertainty.” Because of the political stability there, you don’t have that in the UAE. The long-term goal is always the focus of the vision,” she said.

According to Christopher Meredith, a senior vice president of the American IT company Xsolla, software companies will readily relocate to the UAE if the proper working circumstances are offered because they rely more on talent than hardware. 

From the viewpoint of the game, it is talent-based. “That will remain true if someone offers the best chance to be able to build, innovate, and go to market regardless of the impact of the tariffs,” he said.

The business recently signed a deal with the DMCC to expand the gaming industry in the free trade zon. In response to tariffs and the unstable political environment, UK companies they collaborate with have prioritized their short-term objectives.

“What will happen during the next five years is unknown to me. I have no idea what the next ten years will bring. He stated, “Let’s just concentrate on what is feasible in the near future within the known parameters.” He stated, “That means you have to be more flexible and agile in what you do, and that is a discipline that people are beginning to learn.”

What Are the Trump Tariffs & Why Do They Matter?

The term “Trump tariffs” describes a fresh set of trade restrictions imposed by the US government. Global supply chains have been disrupted by this, particularly in industries like manufacturing and construction.

Why is this relevant to real estate in the UAE? Dubai is ideally situated to capitalize on the trend of international suppliers and developers seeking more stable, affordable markets.

Why the UAE Stands Out Amid Global Disruption

1. Strategic Location + Free Zones

The United Arab Emirates, particularly Dubai and Abu Dhabi, provides global connectivity, robust logistical networks, and tariff-free trade zones. Now, companies looking for other ways to avoid tariffs are focusing on the Gulf region.

2. Over $200 Billion in Infrastructure Investment

The UAE is making significant investments in real estate, transportation, roadways, and logistics. Because of this progressive position, the nation is prepared to meet the growing demand from companies moving or growing here.

3. Dubai’s Residential Sector Is Booming

According to recent reports, residential property prices in Dubai are predicted to increase by more than 20% in 2024 alone. This indicates sustained market confidence, not just a short-term trend.

Benefits for Investors and Buyers 

1. Great Time to Enter the Market: The stability, infrastructure, and prosperity of the United Arab Emirates make it a haven for real estate investment in an era of uncertainty in many global markets.
2. Opportunities in Industrial & Logistics Real Estate: The need for warehouses, logistics centers, and industrial real estate in Abu Dhabi and Dubai is expected to increase as supply chains change. For investors in commercial real estate, this creates new opportunities.
3. Innovation is Driving Confidence: In the areas of AI integration, smart city development, and real estate digitization, the UAE is a world leader. These developments, particularly in regions like Expo City, Dubai South, and free zones, are increasing investor trust and expediting real estate transactions.

Looking Ahead: A Market Built on Adaptability

Trump’s tariffs may cause short-term problems, but they are also giving the UAE a rare chance to solidify its standing as a major international center for business and real estate. The message is obvious for developers, investors, and end users:

The UAE is open, prepared, and future-oriented. Whether it’s a holiday rental, a family home, or a business endeavor, this may be the ideal time to invest in real estate.