{"id":112097,"date":"2026-03-03T00:00:00","date_gmt":"2026-03-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=112097"},"modified":"2026-03-03T08:45:45","modified_gmt":"2026-03-03T08:45:45","slug":"nobody-knows-how-long-the-war-in-iran-will-last-that-has-uae-based-businesses-in-wait-and-see-mode-2","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/03\/03\/nobody-knows-how-long-the-war-in-iran-will-last-that-has-uae-based-businesses-in-wait-and-see-mode-2\/","title":{"rendered":"Nobody knows how long the war in Iran will last. That has UAE-based businesses in \u201cwait-and-see\u201d mode."},"content":{"rendered":"

The initial wave of panic over the weekend has given way to a measure of <\/strong>calm <\/strong>reflection<\/strong> for most people here in the UAE, as the frequency of loud explosions and videos of missiles and debris hitting buildings tapered off somewhat on Monday, day three of the US-Israel-Iran war. <\/p>\n

\u201cThe idea o<\/strong>f safety and stability has declined rapidly<\/strong> due to the increased number of attacks. And of course, the images circulating have become a source of fear, especially for expats and foreigners in the GCC,\u201d MENA economist Hamzeh Al Gaaod tells us. \u201cI believe this will have the biggest negative impact on economies in the future. But for now, the impact will be on aviation, retail, transportation, tourism, and energy.\u201d<\/p>\n

Businesses have shifted from an initial state of shock to a wait-and-see stance<\/strong>, especially after the government released figures showing that defense forces continue to sweep the sky of the vast majority of inbound missiles and drones, Amandeep Ahuja, head of research at business consulting and advisory firm Confluence Consultants, told EnterpriseAM. <\/p>\n

\u201cOf all the glamorous things that we often see in the region, its defense capabilities <\/strong>haven\u2019t been highlighted to the extent that businesses would be aware<\/strong> that we even have an air force or defense system,\u201d Ahuja said. The government\u2019s response and the success of its air defense system have helped reassure many of those who were initially in panic mode, she added. <\/p>\n

Despite reports of businesses pulling out their UAE staff and drawing up contingency <\/strong>plans, Ahuja believes most businesses in the Emirates are thinking long-term.<\/strong> \u201cFor businesses, it\u2019s a long, drawn-out process to expand into this region,\u201d so leaving is not a decision that would be taken lightly, she said. <\/p>\n

That sentiment was echoed by KKR<\/strong>, where a spokesperson told the press<\/a>: \u201cWe take a long-term approach to investing and regularly assess geopolitical and macroeconomic developments as part of our process.\u201d The firm says it will be \u201cmonitoring\u201d developments closely and adjusting its approach as needed. <\/p>\n

A top business advisor we spoke with sees little chance of inbound corporate <\/strong>partnerships slowing down.<\/strong> \u201cInbound investors might price risk in or insure differently, but they\u2019ll still want to benefit from the size of the opportunity that\u2019s up for grabs here,\u201d said the source, who regularly advises top companies in the UAE on risk, corporate crises, and law enforcement issues.<\/p>\n

Others who have recently relocated stand firm on their plans for now:<\/strong> \u201cI have great faith in [the UAE\u2019s] commitment to growth and safety, particularly given its rapid coordinated response over the weekend, and feel as confident as ever building our future here,\u201d Philip Khinda, managing partner at Khinda Advisory, a regulatory consulting firm and board advisor, told EnterpriseAM. <\/p>\n

The US i<\/strong>s calling on its citizens to leave the country: <\/strong>The US State Department has urged<\/a> Americans to depart over a dozen countries in the region, including the UAE, Saudi Arabia, Egypt, Jordan, Qatar, and Oman, citing \u201cserious safety risks.\u201d But with airspace closed and flights restricted, it may prove difficult for Americans to leave the region. <\/p>\n

A sense of \u201cnormal\u201d on social media<\/p>\n

Working overtime to project a sense of normalcy: <\/strong>From business leaders and senior government officials to influencers and everyday residents, folks in the Emirates have taken to social media to project a sense of calm. Many are using social platforms in what they\u2019re positioning as bids to set the record straight amid a proliferation of misinformation. Dozens of expats are on social media showing themselves out in sunny Dubai and Abu Dhabi, assuring those who are watching from afar that they feel as safe as ever<\/a> \u2014 and showing gratitude to the government for its ability to keep business going. <\/p>\n

It\u2019s not just expats:<\/strong> Official Emirati media pages and Emirati leaders are working overtime to reassure people that it\u2019s safe to be out and about. The Dubai Media Office last night posted a video (watch, runtime: 00:28<\/a>) showing President Mohamed bin Zayed Al Nahyan and Defense Minister Hamdan bin Zayed walking around Dubai Mall. <\/p>\n

\n

On the retail front <\/p>\n

Supermarkets and many retail outlets remained open over the past few days<\/strong>, though some have temporarily closed, including Gucci, Reuters<\/a> reports. Chalhoub Group, which operates brands including Versace, Jimmy Choo, and Sephora across the region, closed its stores in Bahrain temporarily but kept branches in the UAE and Saudi Arabia open with limited staff. Apple\u2019s stores are also closed until Wednesday in one mall and Thursday in another, according to Google Maps. <\/p>\n

Still, the wait-and-see approach dominates:<\/strong> Primark, which is set to open its first store in Dubai at the end of the month, says it\u2019s \u201cmonitoring\u201d the situation closely. <\/p>\n

What about talent? <\/p>\n

Ahuja says most residents she\u2019s spoken with have no plans to pick up and run<\/strong>, with many feeling that the general safety, as well as the openness and proactiveness with which the government has dealt with the danger in the past few days, still makes the UAE a better choice \u2014 including individuals from the UK. \u201cPeople are very much settled here,\u201d Ahuja said, noting that if the strikes were to end soon, it\u2019s likely that most people would much rather go back to their lives in the Emirates than evacuate. <\/p>\n

SOUND SMART- <\/strong>Many expats who have moved here in recent years have left their home countries due to a sense of instability, whether economic or policy-related. Others fled wars in their respective countries, like Palestinians and Ukrainians, and thus are somewhat more accustomed to the sense of precarity that has affected the Gulf over the weekend. <\/p>\n

Where the war might play a role: Folks who are contemplating a move <\/strong>to the UAE who haven\u2019t yet committed. They could understandably be more reluctant, Ahuja said. <\/p>\n

Weeding out the hangers-on? <\/strong>From a glass-half-full perspective, more than a few people we\u2019ve spoken to in the past few days have told us they think the conflict could weed out people who were here on a transient basis, leaving better prospects for folks who are committed to the country long-term and appreciate the scale of the potential here. <\/p>\n

Still, reports of high-net-worth individuals <\/strong>hauling out<\/a><\/strong> via Saudi Arabia and Oman<\/strong> do <\/strong>suggest that the initial wave of panic was real <\/strong>\u2014 but those who have chosen to stay have felt better about their decisions as the situation seemed to calm down over the past two days. <\/p>\n

\n

Historical precedent helps <\/p>\n

The power of a strong, consistent policy response: <\/strong>While the \u201csafe haven\u201d image the UAE has cultivated for years might have taken a hit, many we spoke with are drawing comparisons to Covid-19 and the government\u2019s response at the time. The feeling that business continued to trudge along, despite people being in lockdown \u2014 similar to current events \u2014 and the way that the country bounced back after the crisis was over, offers some reassurance. <\/p>\n

\u201cHistorically, the UAE has been brilliant at converting every crisis into an [<\/strong>opening<\/strong>].<\/strong> I expect the same will happen,\u201d Viswanathan Shankar, a former top executive at Standard Chartered and founder of Gateway Partners, told Bloomberg. <\/p>\n

\n

Are rental prices going to go up?<\/p>\n

WATCH THIS SPACE- One data point we\u2019re keeping our eyes on: What the conflict <\/strong>does to the property <\/strong>market<\/strong>, where the residential side of the equation was already on an early path of normalization. Commercial property \u2014 which has been red-hot for a while now amid a major Grade A supply shortage \u2014 has seen prices soar<\/a> 21.9% y-o-y in 3Q 2025, according to government data. <\/p>\n

One scenario playing out in our heads: <\/strong>Some we have spoken with suggested they\u2019re thinking twice about buying property \u2014 a sentiment that could, we think, put upward pressure on rents.<\/p>\n","protected":false},"excerpt":{"rendered":"

A strong response by UAE defense forces is bolstering the business community\u2019s optimism that this is a storm it can ride out<\/p>\n","protected":false},"author":1,"featured_media":112098,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2414],"tags":[1357,19,7,652,642,2413,303],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-112097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-business","tag-economy","tag-enterpriseam-uae","tag-iran","tag-retail","tag-the-big-story-today","tag-war-watch","wpautop","entry"],"acf":{"mongo_id":"eb32a66e-00e7-40d1-8ef9-a8e416a6f423","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/3\/132.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Businesses are in \u201cwait-and-see\u201d mode","related_issue":[112092],"teaser":"A strong response by UAE defense forces is bolstering the business community\u2019s optimism that this is a storm it can ride out"},"yoast_head":"\nNobody knows how long the war in Iran will last. 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