Days after Iranian missile strikes hit targets across the United Arab Emirates in March, Dubai’s leadership convened an emergency meeting with hundreds of business executives to formulate strategies aimed at limiting the economic fallout and restoring investor confidence.
The previously unreported gathering, hosted by Dubai’s Department of Economy and Tourism (DET), brought together senior government officials, prominent business figures and financial institutions as authorities moved swiftly to prevent capital flight and protect the emirate’s status as a regional tourism and financial hub.
According to five people who attended the private meeting, officials sought direct input from the business community on measures needed to revive tourism, attract investors and support struggling companies. Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum reportedly moved between tables, personally engaging with executives and soliciting recommendations.
“Attendees were asked three questions: What should we do to get tourists back? What should we do to get investors back? And how can we support your business?” two participants told Reuters.
The March 10 meeting took place at the newly renovated Meydan Hotel as shelter alerts were being issued across the UAE. It was chaired by Helal Saeed Al Marri, Director-General of the DET, and attended by prominent figures including DAMAC founder Hussein Sajwani, Emirates Airline President Tim Clark, representatives of Rothschild and UBS, as well as military officials and leading family-owned conglomerates.
Sources said government officials assured business leaders that fiscal and financial support would be provided while teams worked to address disruptions to supply chains. The discussions helped shape a series of economic support measures, including a central bank liquidity package launched days later.
Dubai has since committed 2.5 billion dirhams ($681 million) in economic assistance, largely targeting sectors hardest hit by the conflict, particularly tourism and retail.
In a statement to Reuters, the DET said it maintains “regular and ongoing engagement with a broad range of stakeholders as part of Dubai’s established public-private collaboration model.”
“While recent months have seen political instability in the region, they have also underscored the city’s resilient economic foundations, and its ability to absorb challenges,” the department said, adding that Dubai remains committed to its long-term strategic objectives.
Although a preliminary U.S.-Iran peace agreement has eased immediate concerns, business leaders and analysts say restoring confidence among investors and tourists will take considerably longer.
“Investors want signals on how authorities will respond if tensions return, not just how they managed the last shock,” said Neil Quilliam, an associate fellow at Chatham House, nearly four months after the conflict began.
Several investor outreach initiatives have already followed, including conference calls organised by major banks such as JPMorgan and Citi, according to sources familiar with the matter.
Dubai’s economy, which derives less than 2% of its GDP from oil, has built its success on attracting multinational corporations, financial institutions and wealthy investors through its strategic location, tax advantages and access to Gulf sovereign wealth funds.
That economic model, however, also made the emirate vulnerable during the conflict.
HSBC analysts have downgraded their Gulf growth forecasts for 2026 by five percentage points since the fighting began and now expect the region’s economy to contract for the first time since the COVID-19 pandemic. They estimate that non-oil growth in Dubai and Abu Dhabi could decline by more than eight percentage points year-on-year.
“March and the entire second quarter have been lost,” the chief executive of a UAE investment firm said on condition of anonymity.
Robert Mogielnicki, founder of consultancy Polisphere Advisory, said the recovery was likely to vary across sectors.
“I suspect recovery will be uneven, with some sectors and activities bouncing back or adjusting to the new normal faster than others,” he said.
While airlines have resumed most operations and restaurants are beginning to see customers return, hotel occupancy rates remain sharply lower. Trade routes have also been affected, with increasing volumes of cargo moving through Oman and Saudi Arabia rather than the Strait of Hormuz, bypassing Dubai.
Analysts and business leaders say further intervention may be required to support vulnerable sectors.
Quilliam suggested targeted assistance for tourism, aviation and small and medium-sized enterprises (SMEs), while one SME executive proposed that authorities encourage banks to expand lending and consider temporary corporate tax relief or rebates.
Another business owner recommended government partnerships with global private equity firms to stabilise asset values, reduce investment risks and strengthen international confidence in the market.
The UAE Central Bank moved to shield the financial system by introducing a relief package on March 17 backed by more than $270 billion in foreign exchange reserves.
However, analysts note that the 2.5 billion dirham support package remains modest compared with the approximately $1.93 billion deployed during the pandemic and represents only a small fraction of Dubai’s 2024 real GDP of $121 billion.
Long-term investment plans
Despite the economic disruption, Dubai continues to pursue ambitious infrastructure and development projects aimed at reinforcing long-term growth.
Among the projects announced are a new metro line valued at $9.3 billion, airport expansion contracts worth an estimated $15 billion and a planned $55 billion development by Emaar Properties.
Nevertheless, market sentiment remains fragile. Foreign investor activity on the Dubai Financial Market shifted from net inflows of $890 million as of February 26, just before the conflict began, to net outflows of $853 million by June 12.
Mogielnicki said Iran’s strikes had generated “acute economic pressures,” partly because of the UAE’s large expatriate population, though he noted that confidence in the economy’s resilience remains broadly intact.
Quilliam said the durability of the peace agreement would ultimately determine the pace of recovery.
“If stability persists, capital will return. If uncertainty lingers, they will hold back,” he said.
Boluwatife Enome
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