UAE: H.E. Guy Parmelin, President of the Swiss Confederation, said Switzerland’s long-standing policy of neutrality and its banking sector remain among the country’s main pillars of strength, warning that rising protectionism poses a threat to the global economy.

His remarks were made during a session titled “A Conversation with the President of the Swiss Confederation,” at the World Governments Summit 2026 which commenced today and will run for three days under the theme “Shaping Future Governments”.

President Parmelin said “stability is essential to attracting investment, as it provides a secure and predictable environment for businesses”. He stressed the need for increased investment in education, scientific research and innovation to support long-term economic resilience.

Commending the UAE’s development model, Parmelin said he is inspired by the country’s bold approach, future-oriented vision and ability to attract foreign investment, as well as its openness to experimentation and innovation. He noted similarities between Switzerland and the UAE as economies driven by international trade and the sustainable use of resources.

He said these shared characteristics create strong opportunities to expand bilateral cooperation, particularly in light of both countries’ advanced universities, research centres and investments in modern technologies.

Economic diversification

Parmelin said Switzerland, despite limited natural resources, has built a diversified economy by expanding its network of free trade agreements and relying on human capital and knowledge-based growth.

Addressing technological change, he said progress in areas such as artificial intelligence cannot be halted, noting that the challenge lies in adapting to technology and using it to enhance societal wellbeing while limiting risks.

President Parmelin also highlighted the challenges of maintaining neutrality during times of conflict, noting that Switzerland’s small population requires flexibility and dynamism. He pointed to efforts to preserve a competitive business environment through reduced bureaucracy, lower costs for companies and fair market conditions, while reaffirming that Switzerland does not follow a state-directed industrial policy.

Independence

On relations with the European Union, Parmelin said the issue remains one of Switzerland’s key challenges, given that the EU is its largest trading partner. He said the government is working to strike a careful balance between safeguarding national independence and maintaining openness to the European market.

He warned that prolonged global stagnation and growing protectionism could disproportionately affect smaller economies, stressing that such trends would harm not only Switzerland but the global economy.

In closing, Parmelin said achieving peace and reducing international tensions are global priorities amid an unprecedented number of conflicts. He reaffirmed Switzerland’s readiness to support mediation efforts and offer good offices, subject to the willingness of the parties involved.

The World Governments Summit 2026 brings together more than 60 heads of state and government and their deputies, over 500 ministers, representatives of more than 150 governments, over 80 international and regional organisations, more than 700 CEOs, and over 6,250 participants from around the world.