Major international banks are closing down and evacuating their offices in the Gulf countries

Citibank said on Thursday it would close most of its branches and financial centers in the United Arab Emirates until March 14 as a precaution as banks in the region sent employees home amid concerns over escalating conflict in the Middle East.

The measures by the US financial group are the latest sign of growing concern among banks after Iran explicitly threatened Gulf banking interests linked to the US and Israel.

Citi's branch in the Mall of the Emirates in central Dubai is exempt from the closure, the bank said on its website, adding that it plans to reopen all affected branches on March 16.

Citi has switched to a remote work model for all its employees in the United Arab Emirates and continues to serve customers without interruption, a bank spokesman told Reuters.

The war between the US and Israel on the one hand and Iran on the other has so far caused around 2,000 deaths and thrown global energy and transport markets into chaos as the conflict has spread across the Middle East, including through Iranian attacks against Israel, US bases and the Gulf states.

HSBC has closed all its branches in Qatar

This week, Citi asked employees to evacuate offices in Dubai International Financial Center and Oud Metha in Dubai and to work from home until further notice.

“The decision to evacuate three of our buildings and close branches in the UAE was made in response to information we received and is consistent with our commitment to prioritize the safety of our colleagues,” the spokesperson said.

HSBC, another major global bank, has closed all branches in Qatar until further notice, according to an announcement to customers, to ensure the safety of employees and customers.

The war has badly damaged Dubai's image as the safest economic center in the region, sparking fears of capital withdrawals, layoffs and relocation of firms to other locations.

Citi said on its website that including its phone banking service in the UAE is currently operating at limited capacity and that check processing will experience delays.

Iran's threat to international banks

Citi's announcement on Thursday came a day after Iran's military said it now plans to attack “economic centers and banks” in the Gulf following an Israeli-US attack on a bank branch in Tehran.

“The enemy has given us a free hand to target economic centers and banks” belonging to the United States and Israel in the region, the headquarters of Khatam al-Anbiya, affiliated with the Islamic Revolutionary Guard Corps, said in a statement broadcast on Iran's national television.

According to local media, an Israeli-American airstrike killed employees of a bank in the capital who were working “exceptionally” to prepare monthly salaries.

“A branch of the oldest bank in my country was bombed while it was full of employees,” Iranian Foreign Minister Abbas Araghchi said Wednesday, adding in a message he aired on the “X” network that the armed forces “will avenge this crime.”