South Africa can take many lessons from the UAE and Saudi Arabia and how they have fortified themselves against the impact of US trade tariffs.
In an era marked by shifting global trade dynamics, Middle Eastern countries have showcased impressive foresight and agility. They have adapted to economic challenges, including US President Donald Trump’s tariffs, with remarkable speed. This contrasts sharply with South Africa’s struggle to implement similar strategies.
Leadership in the Middle East offers valuable lessons for us
The US tariffs have driven Middle Eastern countries to diversify their economies. They have positioned themselves as both regional and global trade hubs. Nations such as the UAE and Saudi Arabia have taken a long-term approach to economic sustainability. They have heavily invested in infrastructure, tourism, finance and innovation.
Many Middle Eastern countries, including the Gulf nations, are subject to a minimum 10% levy. This is only because they run trade surpluses with the United States. Jordan has been hit with a 15% tariff. Yet, its Minister of Industry, Trade and Supply, Yarub Qudah, recently stated that this has granted Jordan a competitive advantage.
When a 15% tariff is imposed on Jordan, while higher rates are applied to competing countries in the US market, the competitiveness of Jordanian products increases.
I have seen how Middle Eastern countries, aware of the finite nature of their oil reserves, have been proactive in steering their economies toward future-proof industries. Their leadership understands that oil will one day run out. They are wisely reinvesting in their economies by transforming their countries into tourism, entertainment and financial hubs.
Leadership in the Middle East aligns vision with action
By offering tax reductions, incentives and creating environments that attract global companies, they are laying the groundwork for a diversified and resilient economy.
Saudi Arabia leads the world in tourism growth. The country has shown a remarkable 102% increase in international tourist arrivals in the first quarter of 2025 compared to the same period in 2019. The kingdom’s Vision 2030 initiative is designed to diversify the economy, with tourism as a key pillar.
By contrast, South Africa’s response to the tariffs has been hindered by persistent political instability, poor governance and a lack of strategic long-term vision. Leadership in the Middle East aligns vision with action. South Africa has not yet achieved this alignment.
Although our government has engaged in discussions with international powers like China, India and the Middle East, these visits often fail to produce tangible results. Internal dysfunction blocks meaningful action. Even with global events such as the upcoming G20 Summit hosted in South Africa, there is no clear strategy to leverage these opportunities for long-term growth.
One of the most glaring differences between Middle Eastern countries and South Africa is the alignment of national visions with industrial and trade strategies. Saudi Arabia’s Vision 2030 integrates trade and business reforms, including ISO certifications and standards compliance, to position the country as a leading global economic force.
Compliance as a strategic asset
South Africa has missed the opportunity to align its industrial policy with international trends. This has slowed our economic development. In the Middle East, ISO certifications are not just a box to tick. They are a strategic tool that fosters business credibility, quality and trust. These standards have become ingrained in their culture and governance systems. This ensures foreign investors are confident in the consistency of products and services.
In South Africa, ISO standards are often seen as a compliance obligation rather than a means to improve business operations. While Middle Eastern nations view compliance as a strategic asset that bolsters their international standing, many South African companies see it as a cost of doing business. This mindset has prevented us from leveraging ISO standards effectively to overcome trade barriers.
In the Middle East, ISO certification is embedded in business practices. It creates a culture of excellence and operational efficiency. Many South African companies fail to realise the value of ISO beyond the certificate. They see it as a formality rather than an essential tool for competitiveness.
In conclusion
Despite these challenges, I remain optimistic about South Africa’s potential to turn things around. I believe that business leaders can align themselves more closely with their Middle Eastern counterparts.
Immediate steps include taking responsibility for improving governance, investing in proper training on ISO standards, and implementing a culture of accountability within organisations. South African leaders must stop viewing compliance as a burden and start seeing it as a tool for improvement.
By embracing best practices and committing to quality, we can strengthen our position in a global economy dominated by trade barriers and tariffs. Leadership in the Middle East has shown us what is possible. It is up to us to act.
Muhammad Ali | Managing Director | World Wide Industrial & System Engineers (WWISE) | mail me |
