WWISE Managing Director Muhammad Ali argues that the republic 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 in adapting to economic challenges, including US President Donald Trump’s tariffs.

This contrasts sharply with South Africa’s struggle to implement similar strategies, according to Muhammad Ali, managing director of ISO specialist World Wide Industrial & Systems Engineers (WWISE).

The US tariffs have driven Middle Eastern countries to diversify their economies, positioning themselves as both regional and global trade hubs. These nations, such as the UAE and Saudi Arabia, have taken a long-term approach to economic sustainability, heavily investing in infrastructure, tourism, finance, and innovation.

Many Middle Eastern countries, including the Gulf countries, are subject to the minimum 10% levies but 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, in fact, granted Jordan a competitive advantage. He noted that when a 15% tariff is imposed on Jordan while higher rates are applied to competing countries in the US market, this enhances the competitiveness of Jordanian products.

Ali points out that 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, and they are wisely reinvesting into their economies by transforming their countries into tourism, entertainment, and financial hubs,” he said. "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, with the country showing 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 being a key pillar.

By contrast, South Africa’s response to the tariffs has been hindered by persistent political instability, poor governance, and lack of strategic long-term vision.

Ali highlights that while the South African government has engaged in discussions with international powers like China, India, and the Middle East, these visits often fail to result in tangible action due to internal dysfunction.

“South Africa struggles to implement effective governance. Even with global events such as the upcoming G20 Summit hosted in South Africa, there is no clear strategy to leverage such 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. For example, 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.

Ali argues that South Africa has missed the opportunity to align its own industrial policy with international trends, resulting in slow progress in economic development.

“ISO certifications are not just a box to tick in the Middle East; they are a strategic tool that fosters business credibility, quality, and trust. These standards have become ingrained in their culture and governance systems, ensuring foreign investors are confident in the consistency of products and services.

“Unfortunately, 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, South African companies often view it as a cost of doing business. This mindset has hindered the ability of South African firms to leverage ISO standards effectively to overcome trade barriers.

"In the Middle East, ISO certification is embedded in business practices, creating a culture of excellence and operational efficiency. Many South African companies, on the other hand, fail to realise the value of ISO beyond the certificate, often seeing it as a formality rather than an essential tool for competitiveness.”

Despite these challenges, Ali remains optimistic about South Africa’s potential to turn things around. He offers several immediate steps for business leaders to align themselves more closely with their Middle Eastern counterparts, including taking responsibility for improving governance, investing in proper training on ISO standards, and implementing a culture of accountability within organizations.

"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, South Africa can strengthen its position in a global economy dominated by trade barriers and tariffs.”