When Sheikh Khalifa Bin Zayid Al Nahyan died in May 2022, power passed smoothly to his younger brother, Sheikh Mohammed Bin Zayid Al Nahyan. Sheikh Mohammed had already assumed quasi-head of state duties for numerous years due to his brother’s extended illness. The other emirates promptly affirmed him as the new president.
The UAE made a strong economic recovery from the COVID-19 pandemic. Growth returned to 5% in 2022, while inflation remained relatively modest at 4.8%. The non-oil sector performed exceptionally well in 2021 and 2022. Labor market reforms, along with flexible visa schemes, were implemented to attract and retain skilled foreign workers better.
Regionally, the UAE ended the rift with Qatar, re-established diplomatic relations with Iran and concluded agreements with Israel, strengthening regional economic cooperation. In addition, energy and climate diplomacy have taken center stage in UAE policies. The country has entered a $100 billion partnership with the United States for strategic energy investment and announced net zero targets by 2050.
