The recent events around Iran have already produced and continue producing economic shocks around the whole world. Singabiz has been recommending investments in the UAE for over 2 years (for example here and here), and it is time to analyze what happens today. Are your investments in Emirates still secure?
Mass Media
Many representatives of the Western mass media crank articles full of malicious joy. Expats and investors who left Western countries and chose Dubai as the new residency would now regret their choice. Dubai chocolate makes room for fear and desire to leave as soon as possible. Complex bureaucracy of many Western countries would suddenly become more attractive than drones above Dubai and burning hotels on the Palm. Tens of thousands of tourists are stranded and cannot leave the region at war.
Dubai’s answer to the current situation
The truth is that Dubai has a clear response. As usual. Remember the floods a couple of years ago. At that time, Emaar as the biggest real estate constructor took over renovation of all its properties impacted by the floods. There was no financial impact on property owners.
Today, with the flight cancellations, Dubai extends the hotel stays for the “stranded” tourists and pays for them. Meals and rebooking of flights? On the costs of Dubai’s government. The hotels are prohibited from making any uplifts of the prices or charging any penalties for last-minute stay extensions. Instead of it, hotels are to report to the government for help if needed.
It’s not a PR move. It’s real governance.
Is Dubai really in danger?
Dubai as such is not a target of the Iranian missiles. Iran mainly targets US-bases, not the civil infrastructure. That parts of shut-down drones can fall uncontrollably, and damage civil constructions is evident (and probably also caused known damages). But these are mainly collateral damages, not specific targets.
It’s worth to mention that Iran itself has investments in Dubai. Destroying financial system or attacking the civil infrastructure in Dubai, Iran would attack its own investments and financials at the same time.
Dubai has a position like “Switzerland” of Middle East and the BRICS+ countries (Iran making part of BRICS+ since over two years now). Too much capital from all over the world is invested in Dubai. Iran included.
Therefore, we do not see a direct danger to Dubai because of the current war. As an example, Switzerland was never attacked during the second World War exactly because of the same reason: too much capital from all around the world was cumulated in the country. Surely, the airspace might be impacted, the flights might be impacted. But Dubai and Emirates as such would not become the target for Iranian drones (apart areas with US-military presence).
All the projects continue as planned. There are no delays in the construction areas. The economic system is fully intact. The crisis is not discussed in Dubai, it’s being managed.
What does it mean for investors?
Short-term, investors might be scared about the escalation of the conflict in the Middle East, and the new investments might become less intensive. This could probably cause some price drops in Dubai’s markets. Surely, the overall situation will strongly depend on the duration of the conflict. The issues in the strait of Hormus will also play a role. But it will not be just the problem of Dubai. It would have an impact on the economy worldwide.
Mid- and long-term: we expect that Dubai will keep its role as the main financial place in the Middle East and within BRICS+. Even if investors might apply the brakes right now, investments will go on later on. Investing in Dubai today could help you to position yourself for the upcoming improvements.
Probably best time to invest
Remember: periods of riots, wars, and further shocks were always moments when good and profitable investments could be made, if they were made correctly. During Napoleon’s wars Rotschild said: “Buy to the sound of cannons, sell to the sound of violins.” Don’t see the current situation as a signal to exit Dubai’s investments. See it as a chance and the best moment to invest.
Geographical diversification is not a luxury; it’s a must today
The current conflict shows clearly that geopolitical situation can change in any region in the world. As we steadily stress, your residency, the places of your business, your assets should be diversified across different continents in order to be best secured from any potential crisis. Singabiz® provides you with a unique service being able to assist you on different continents and in the most demanded countries across the world with your company formation and support, with the residencies and citizenships, with investments and asset protection.
If you want more information or need a consultation, do not hesitate to contact us. One of Singabiz® Representatives will be glad to assist you.
The picture in this article is produced by Microsoft Copilot
