{"id":7863,"date":"2026-05-19T17:02:39","date_gmt":"2026-05-19T17:02:39","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=7863"},"modified":"2026-05-19T17:02:39","modified_gmt":"2026-05-19T17:02:39","slug":"the-uaes-image-as-a-middle-eastern-haven-is-tested-by-the-iran-war","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=7863","title":{"rendered":"The UAE\u2019s image as a Middle Eastern haven is tested by the Iran war"},"content":{"rendered":"
\n

By JON GAMBRELL<\/strong><\/p>\n

DUBAI, United Arab Emirates (AP) \u2014 The United Arab Emirates for decades has advertised itself as a haven for international business in a Middle East awash in violent upheaval. Those waves have now crashed into this nation, testing its economic model like never before.<\/p>\n

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The UAE, a close ally of the United States and Israel, faced more missile and drone attacks from Iran during the war than any other country. The attacks \u2014 and Iran\u2019s chokehold on the Strait of Hormuz \u2014 have more than halved the Emirates\u2019 exports of crude oil and natural gas. Its tourism and conference sectors have also suffered.<\/p>\n

The country, which sits just across the Persian Gulf from Iran, has portrayed itself as unfazed, even as it makes significant changes. It recently announced plans to build another pipeline to reduce its reliance on the strait, and it dropped out of the OPEC oil cartel so it can boost energy production longer-term, something that had been under consideration since before the war.<\/p>\n

While the U.S. and Israel started the war, the UAE is firmly entangled. A drone attack Sunday on its Barakah nuclear power plant underlines the continued risks \u2014 even if a shaky ceasefire holds.<\/p>\n

Because the Emirates boasts a large surplus of cash, the war\u2019s economic disruptions so far do not appear to have caused major job losses or an exodus of foreign business. The longer the standoff drags on and prevents business as usual in the Emirates, the greater the risk to its image that has been key to drawing international business and investment.<\/p>\n

Emirati officials\u2019 increasingly accuse Iran of piracy and even terrorism, while threatening to take military action.<\/p>\n

The UAE \u201cwill not tolerate any threat to its security and sovereignty under any circumstances,\u201d its Foreign Ministry said Sunday night. \u201cIt reserves its full, sovereign, legitimate, diplomatic, and military rights to respond to any threats, allegations or hostilities.\u201d<\/p>\n

\n<\/div>\n

UAE\u2019s ruling family directs a more aggressive foreign policy<\/h4>\n

It\u2019s hard to know how the UAE will respond to the Barakah attack, which caused no radiological release and hasn\u2019t stopped the nuclear plant in Abu Dhabi\u2019s far western desert from operating.<\/p>\n

The UAE is a federation of seven autocratically ruled sheikhdoms, including Dubai and Abu Dhabi. Its top ruling body is the Federal Supreme Council, comprised of the hereditary rulers of its seven emirates. But decision-making is dominated by Abu Dhabi\u2019s Sheikh Mohammed bin Zayed Al Nahyan and his family.<\/p>\n

The ruling family, analysts say, has directed a more aggressive foreign policy in the last decades, including entering the war in Yemen against Iranian-backed Houthi rebels. The UAE helped bring Egyptian President Abdel-Fattah el-Sissi to power in 2013, and is alleged to have sent arms to parties in Sudan and Libya\u2019s civil wars, which it denies.<\/p>\n

Sheikh Mohammed, who rarely speaks publicly, gave his only brief remarks on the war for state media while visiting those wounded by Iranian attacks at a hospital in March.<\/p>\n

\n<\/div>\n

\u201cThe UAE is attractive, the UAE is beautiful, the UAE is a model. But I say to them: do not be misled by the UAE\u2019s appearance,\u201d the sheikh warned at the time. \u201cThe UAE has thick skin and bitter flesh; we are no easy prey.\u201d<\/p>\n

But that doesn\u2019t mean there has been no pain.<\/p>\n

Economic warning signs<\/h4>\n

The closure of the Strait of Hormuz has impeded the UAE\u2019s ability to sell crude oil and natural gas, though a few of its tankers have made it out. It can export approximately 1.8 million barrels of crude a day through a pipeline to Fujairah, a city with an oil terminal on the Gulf of Oman outside the strait. The Emirates is trying to speed up the construction of a second pipeline to double that capacity.<\/p>\n

The UAE\u2019s tourism and conference market \u2014 estimated to be more than 12% of its economic output \u2014 has also been hit hard.<\/p>\n

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Since the war started Feb. 28, over 70 scheduled events in the UAE have been postponed, canceled or otherwise affected, according to Northbourne Advisory, a communications firm based in Qatar that\u2019s been tracking the effects of the war. The Emirati government did not issue a blanket ban for events, but organizers likely changed their plans over \u201cinsurance withdrawal and liability exposure,\u201d the firm said.<\/p>\n

On May 4, the country\u2019s airline, Emirates, announced it had resumed nearly its entire schedule of flights out of Dubai International Airport, the busiest worldwide for years for international travel. But the same day, Iran launched multiple drone and missile attacks, setting off alerts on mobile phones and groans among the Emirates\u2019 business community, which is eager to return to some sense of normalcy.<\/p>\n

The airport appears to be building a protective cage around its jet fuel tanks, something officials there declined to discuss.<\/p>\n

Hotels, including Dubai\u2019s iconic, sail-shaped Burj Al Arab, have closed for renovations as occupancy rates have fallen to around 20%. Moody\u2019s Analytics estimates that rate will fall to 10% in the June quarter, down from 80% before the war.<\/p>\n

Moody\u2019s warned that occupancy rates will likely stay down through the rest of 2026, with travelers likely to remain hesitant even after hostilities subside.<\/p>\n

In an analysis published on Monday, the Institute of International Finance said: \u201cDubai\u2019s openness makes it vulnerable to shocks in travel, logistics, and confidence, while Abu Dhabi\u2019s balance sheet and energy assets give the federation the capacity to absorb the blow.\u201d<\/p>\n

Coin-operated fighter jet art<\/h4>\n

Dubai in particular has been trying to show it is still open.<\/p>\n

This past weekend, Dubai hosted an abbreviated version of its annual Art Dubai show. The war felt close by, not only because the show\u2019s preview happened the same day Iran seized a ship anchored off Fujairah.<\/p>\n

One piece of art was a coin-operated black fighter jet, covered in pairs of black Nike tennis shoes.<\/p>\n

One artist, Solim\u00e1n L\u00f3pez of Spain, came with a piece centered on the idea of him claiming ownership of a metal-rich asteroid that\u2019s the target of a NASA mission. The artwork is meant to reflect on how countries and companies extract oil and other commodities.<\/p>\n

The conflict made it a challenge to attend with his work, he said. \u201cBut I said I have to do my best, because I do believe that it\u2019s the perfect context to talk about this in the region,\u201d he said.<\/p>\n

Another artist, Alfred Tarazi of Beirut, noted his grandparents lived through two world wars.<\/p>\n

\u201cLife doesn\u2019t stop in a world war,\u201d he said. \u201cWe can only counter a narrative of violence with culture.\u201d<\/p>\n

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