The Iran war is a jolt to Dubai’s business model
Can the emirate keep people and investors coming?
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IT SEEMED too good to be true. In a region plagued by conflict, Dubai had the air of a place apart. It drew the well-heeled and economically footloose, to live, work and make money, or to enjoy shopping and sun. It became a global transport hub, linking East and West. It has used its wealth to join the artificial intelligence (AI) race.
Key to it all was keeping out of regional conflicts. Not even Hamas’ attack on Israel in October 2023, the ensuing Gaza war, or last year’s 12-day fight between Iran and Israel did much to knock confidence.
Now, Iran’s retaliation against the American and Israeli attacks that began on Saturday (Feb 28) has hit the heart of all this – and shaken Dubai’s halo of safety. The Fairmont, a hotel in the Palm Jumeirah, a swanky man-made property development, was in flames on day one. An Amazon Web Services (AWS) data centre caught fire.
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