UAE Boardrooms Urged to Address Hidden Psychological Cost of Regional Uncertainty

Business leaders in the UAE are being urged to treat executive mental health as a corporate governance and business-continuity issue as prolonged regional uncertainty continues to place psychological pressure on entrepreneurs, executives and employees.

Dr Joseph El-Khoury, Co-founder, CEO and Medical Director of The Valens Clinic in Dubai, said sustained uncertainty can keep the body's stress response activated, potentially affecting sleep, concentration, decision-making and overall performance.

While the UAE's economic fundamentals remain comparatively resilient, prolonged uncertainty can create a separate challenge for businesses as leaders deal with concerns surrounding employees, investors, families and future planning.

Economic uncertainty adds to psychological pressure

According to the ICAEW Q2 2026 Middle East Economic Update, Middle East GDP is forecast to contract by 4.1% in 2026, compared with an earlier projection of 3.6% growth. The report also forecasts a 30% decline in inbound arrivals to the GCC, although non-oil activity in the UAE and Saudi Arabia showed signs of recovery in May.

The psychological impact of uncertainty extends beyond current economic indicators. A 2022 McKinsey Health Institute survey of more than 4,000 employees across Saudi Arabia, Kuwait, the UAE and Qatar found that 66% had experienced at least one mental-health challenge during their lives, while one in three reported symptoms of burnout.

Mental wellbeing is also part of the UAE's broader policy agenda, with the National Strategy for Wellbeing 2031 identifying the promotion of good mental health as one of its strategic objectives.

Leaders face particular pressure

The burden can be especially pronounced among founders and senior executives, who are often expected to remain composed while managing concerns from employees, investors and families.

Dr El-Khoury said reluctance to seek professional support remains an issue among some leaders. Stigma, shame, fear of appearing vulnerable and long-standing expectations around leadership can make it difficult for executives to acknowledge when they are struggling.

He warned that assuming psychological effects will simply disappear when economic conditions improve can overlook the potential long-term consequences of prolonged stress.

The effects can also extend throughout an organisation. Leaders operating under sustained emotional and cognitive pressure may experience difficulties with decision-making and communication, while their stress can influence the wider workplace environment.

The World Health Organization estimates that depression and anxiety cost the global economy around US$1 trillion annually, primarily through lost productivity.

Moving from endurance to resilience

Experts say corporate resilience should involve more than simply enduring difficult conditions. Instead, organisations can build systems that help leaders process pressure, recover effectively and maintain sound judgement.

Several measures can support this approach:

• Normalise professional support: Leaders who openly and responsibly use coaching, therapy or recovery time can help reduce the stigma surrounding mental-health support.
• Develop confidential peer networks: Executive forums can provide leaders with a safe environment to discuss workplace pressures without reputational concerns.
• Include wellbeing in governance: Boards can incorporate wellbeing reviews, workload assessments and succession planning into broader risk-management processes.
• Provide early clinical support: Confidential access to qualified mental-health professionals can help address concerns before they develop into a crisis.
• Measure organisational wellbeing: Companies can monitor reliable, aggregate wellbeing indicators alongside business measures while protecting individual privacy.
• Allocate dedicated resources: Funding for therapy, coaching and leadership development can be treated as part of wider workforce and business resilience planning.

Rahaf Kobeissi, Founder of Rays Your Mental Health, said emotional skills should be viewed as an important part of effective leadership. According to Kobeissi, greater self-awareness, compassion and adaptability can help leaders communicate more effectively and create workplaces where employees feel safer to develop and contribute.

Mental health becomes a business continuity issue

For UAE companies operating through periods of regional and economic uncertainty, the discussion is increasingly moving beyond individual wellbeing. The ability of senior leaders to maintain clear judgement, communicate effectively and recover from sustained pressure can directly influence organisational stability.

As a result, mental-health support is increasingly being positioned as part of the infrastructure of a resilient business rather than an issue to be addressed only after a crisis emerges.

With regional uncertainty continuing to shape business decisions, UAE boards and executives are being encouraged to give greater attention to the psychological health of the people responsible for leading their organisations.