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Dubai: From luxury to shelters
What is happening in the UAE?

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@fyinews team

20/03/2026

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fyi:
  • What is happening in the UAE?
  • The region got a taste of Middle Eastern tensions
  • Facing an existential threat
  • Has Dubai stopped being safe after all?
  • Flights
  • The economic consequences
  • Those who believe they are not affected
  • The “opportunity”
  • Once again, the poor pay the price
  • Sources

What is happening in the UAE?

Following the attacks by the US–Israel on Iran–Lebanon, Iran responded with attacks on countries of the Persian Gulf, while two-thirds of its attacks are on the United Arab Emirates (UAE) and Dubai.

90% of the attacks were intercepted, but 6 people have died and 141 have been injured.
The reason the UAE has become a target is partly due to its cooperation with the West, but also because of Dubai’s reputation as a tourist and international financial center.

 

The region got a taste of Middle Eastern tensions

Dubai in recent decades has been presented as a “stylish refuge”: luxurious, apolitical, without income tax, detached from the tensions and wars in the Middle East, despite being located near the Strait of Hormuz.

Since 28.02, as the WP writes, “the region woke up and remembered that it lives in an unstable part of the world that can affect it.”

At the same time, reports speak of a lack of shelter infrastructure, revealing unpreparedness for conflict.

 

Facing an existential threat

Now, Dubai is facing an existential threat, as the war has shaken the security of a place—a security in which so many foreigners have invested.

Specifically, the money of 81,000+ millionaires has been invested and has “found refuge” there, including 200+ individuals with wealth over $100 million and 20 billionaires.

“Foreigners” in Dubai, after all, are… the locals, since they make up only 10% of the total population of 4 million.

 

Has Dubai stopped being safe after all?

Already, tens of thousands of residents and tourists have departed, while analysts estimate that the escalation of the war will affect Dubai’s development model.

This could lead to the collapse of the perception of a safe haven for capital, especially in the real estate sector, making investors more cautious.

The same, of course, is happening at a social level, as foreign workers in the region are responding to the situation in the same way.

 

Flights

Dubai International Airport is among the busiest in the world for international passengers and, in 2025 alone, nearly 90 million travelers passed through it.

However, at this time and until May, thousands of flights have been canceled.

In recent days, some operations have temporarily restarted, with Emirates operating a reduced flight schedule, trying to gradually restore its network.

 

The economic consequences

Analysts estimate that the economic losses will be serious if the war is prolonged and the city continues to lose its reputation as a “safe haven.”

Losses for Dubai’s $30 billion in annual tourism revenue are expected to be significant, as flight and booking cancellations are occurring during a period of intense tourist activity.

Across the Middle East as a whole, the conflict may cause an annual decrease of up to 27% in international arrivals and losses of $56 billion.

 

Those who believe they are not affected

The sheikh is reassuring, telling residents that they have nothing to fear, and some indeed seem to continue their lives as normal, even though beach bars, shopping malls, and five-star hotels remain empty.

There continues to be both tourist and non-tourist presence on the area’s beaches, while many of those who left—if not most—intend to return, arguing that the effects are short-term.

 

The “opportunity”

There is also the analysis that describes the current situation as an “opportunity” for Dubai to reassess the city’s course.

Specifically, according to this view, Dubai could transition from a model driven by spectacle and rapid growth to something different, based on resilience, social inclusion, and a clearer acknowledgment of the geopolitical realities that shape it.

 

Once again, the poor pay the price

For millions of economic migrants, there is no option to leave Dubai.

Around 2 million Indians, 700,000 Nepalese, and 400,000 Pakistanis live there, many of whom are low-paid, and many, if they leave, are not free to return whenever they want.

Among the dead in the UAE, three were workers from South Asia: a Pakistani taxi driver, a Nepalese security guard, and a Bangladeshi water truck driver.

Sources

Guardian

Wall Street Journal

BBC

New York Times

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