Dubai Businesses Face Heat Of Iran War, Internal Demand A Ray Of Hope

The ongoing tensions between Iran and Israel have impacted the entire Gulf region, including the United Arab Emirates (UAE). In Dubai – a key global hub for tourism, trade, and travel – businesses are witnessing slower activity, especially due to reduced tourist footfall and disruptions in flight schedules. 

Businesses across sectors are witnessing mixed impact, with challenges in logistics and imports but resilience in local demand. NDTV spoke to some business owners from different sectors who talked about the impact of the ongoing crisis in the Middle East on their ledgers. 

Manazir Abbad, from InfoBahn (Marketing Technology), said that uncertainty in the region has begun affecting overall business sentiment, particularly in sectors dependent on global movement and travel. He said he has been staying in Dubai for the past 35 years, and it's the first time he's witnessed something like this.

"We never imagined that such a kind of situation could occur in the UAE, but the government is providing all measures to keep us safe," Abbad said.

Mukul Anand, from R3 Factory, said, "This is the first time in over two decades in the UAE that we are seeing something like this." 

He highlighted that their shipments have been impacted, with delays affecting operations. However, he noted a surprising trend: "Local customers remain positive. In fact, demand for repaired and reused electronics is increasing."

Anand added that while imports are slowing, trade within the GCC, especially with Saudi Arabia, continues to remain strong.

In the automobile sector, Gurmit of Axis Workshop pointed out that the slowdown was partly expected as the tourism season was ending. However, the situation has worsened due to the war in Iran.

"The major issue we are facing now is the delay in spare parts. Imports from Europe and other regions have slowed down due to uncertainty," he said, adding that businesses are hoping for stability to return soon.

Anil Agrawal of Seaspeed Marine described a broader impact. "Fuel prices, bunker costs, and war risk premiums have all gone up," he said. 

He confirmed that while some vessels were earlier stranded, movement has now started under regulated frameworks. "There is still concern among the crew, but operations are continuing with caution. The UAE authorities are providing strong logistical support", he noted.

Despite the challenges, there is no panic on the ground. Business owners noted that safety concerns are minimal, and confidence in the UAE's systems remains high. They emphasised that Dubai has shown financial resilience in the past, as seen during the COVID-19 pandemic, and expressed confidence that the city will recover strongly once the situation stabilises.