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The attack on Iran changes the image of Dubai. Until now, the city was a “safe haven”
In this way, the United Arab Emirates, which is one of the most important business centers in the world, was drawn into the conflict. The country has also been considered neutral and safe for years.
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Dubai itself is famous as a city offering luxurious living to Iranian businessmen, American celebrities and Russian oligarchs. This changed last weekend, during which luxury hotels went up in flames and videos appeared online showing missiles flying right next to iconic skyscrapers.
Iran's attacks on the Persian Gulf countries have undermined their image as a safe haven in the unstable Middle East, emphasizes the American daily “The New York Times”.
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Stock markets in Saudi Arabia, Oman and Bahrain fell on Sunday, while trading was suspended in Kuwait, reflecting growing uncertainty among local companies. Dubai has been, among others, forced to suspend flights at one of the most important airports in the world and close the airspace.
“What is happening in the United Arab Emirates could have disastrous consequences.”
It should also be remembered that the Emirates are one of Iran's largest trading partners. “Nothing was more important to them than feeling safe. They were proud of their political maneuvering and hedging to basically earn everyone's favor,” Cinzia Bianco, a Gulf expert at the European Council on Foreign Relations, told the New York Times.
“What is happening in the United Arab Emirates could have disastrous consequences unless they put pressure on Trump to defeat Iran quickly and decisively or surrender immediately,” Marko Kolanovic, former JPMorgan chief strategist, warned on Platform X.
Growing tensions may undermine the region's position as a stable business and investment center. Many years of efforts to attract foreign capital and make economies independent of oil mean that possible shocks in this area may have increasingly greater consequences for global markets.
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Kolanovic recalled that Dubai experienced a real estate crisis in 2009–2010, which had an impact on global financial markets. “This situation is much worse,” he noted. The future of Dubai may be determined by the scale of the outflow of foreign residents and whether, after losing their sense of security, they decide to return.
Over the past few weeks, Gulf governments have publicly sought to prevent war between the United States and Iran, fearing its effects would spread to those countries.
