The lunch gatherings have resumed at the renowned Arts Club in Dubai’s financial hub, leading to increased traffic congestion in the area once again. A number of bankers, traders, and executives who had temporarily exited the UAE due to Iranian missile threats are starting to return to their workplaces.

Following the announcement of a ceasefire between the US and Iran in early April, Dubai appeared to regain its footing. However, on Monday evening, emergency alerts advising residents to take shelter indoors flashed on mobile devices across Dubai and nearby emirates for the first time in weeks.

Read: US efforts to end Iran war stumble as ship seized near UAE

Schools that had recently reopened switched back to online learning, while several financial firms reinstated remote work protocols. Traffic around the Dubai International Financial Centre, which had rebounded to approximately 70% of pre-war levels after the ceasefire, dropped back towards 60% following Monday’s alerts, as reported by mobility analytics company xMap.

The recent strikes targeting a port and offshore vessels near the UAE do not seem to have significantly undermined confidence.

Air defenses successfully intercepted nearly all incoming projectiles directed at the country, and many residents and businesses appear resolved to maintain operations despite the ongoing instability.

Nonetheless, this brief disruption underscores the precarious balancing act confronting the Gulf’s commercial hub as it works to rebuild confidence while remaining vigilant to the possibility of renewed conflict at any time.

“This serves as a reminder that despite a period of stability, the broader situation is still unfolding and uncertainty lingers, even as everyone here is eager to return to normalcy,” stated Edwin Lawrence, CEO of Dubai-based advisory firm Nettlestone Capital Advisors.

Most finance professionals have stayed in the city, ensuring business operations and essential services continue seamlessly. Flexible and remote work arrangements have been introduced as necessary, according to the Dubai Media Office.

“As regional conditions have improved, employees have returned to standard in-person work arrangements.”

A Citigroup spokesperson announced on May 4 that “all employees are now welcomed back to the office, and branches have resumed their normal hours.” Standard Chartered Plc confirmed that its operations in the UAE and office attendance have returned to their usual levels, stating it’s “business as usual.” These policies remain in effect.

This resilience partially reflects the Middle East’s importance to global financial institutions.

The region’s vast capital reserves have long been a crucial source of funding, and many executives pledged unwavering support to the Gulf during the peak of the conflict.

Some firms are even moving forward with investments. Brookfield Asset Management Ltd. is launching a real estate venture in Dubai, making a bold commitment to the city’s property market. “We understand the risks and benefits in the region better than others, and hence are looking to invest,” said Jad Ellawn, managing partner and regional head at Brookfield Middle East.

Golden visas

These initiatives also highlight Dubai’s success in transitioning into a less transient city. Despite expatriates representing over 80% of the population, long-term “golden visas” have incentivized foreign workers to buy homes and start businesses.

Low taxes and safety continue to attract wealthy professionals and global firms, many of which are hiring again, “albeit at a slower pace,” noted Zahra Clark, head of Middle East and North Africa at Tiger Recruitment, which partners with financial companies for recruitment. “Approximately 20% of our pipeline has been put on hold,” she added.

Even amidst unresolved conflict, hedge funds such as Ken Griffin’s $67 billion Citadel are preparing to commence operations in the emirate. Dubai has also relaxed certain compliance requirements to assist firms during the conflict.

In a further indication of confidence within the finance community, 258 companies established regional offices in DIFC in March—a 59% increase from the previous year, according to a representative from the business hub. In total, 775 new firms were launched in DIFC during the first quarter.

Greg Agius, CEO of Switzerland-based recruitment firm Agius & Partners, remarked that numerous bankers and high-net-worth individuals have been impressed with how the UAE has managed the crisis.

“Dubai offers a lot for families and business operators,” he commented. “While Switzerland may be beautiful, it’s slower-paced and has higher taxes.”

However, even as bankers return to their workplaces, the landscape for deals throughout the region is becoming increasingly uncertain. Many planned initial public offerings for the first half of the year are expected to face delays or cancellations, while mergers and acquisitions activity may slow down as firms defer investments, according to sources familiar with the situation.

Ripple in the economy

Beyond finance, the extended disruption has had a cascading effect throughout the wider economy.

Emirates has rebounded quicker than other regional airlines but is still operating at around 75% of pre-war capacity.

Hotel occupancy has dropped to about 33% from over 80% before the conflict, as reported by CoStar Group.

Executives familiar with the situation anticipate that activity will begin to pick up in a few months, just after the typically quiet summer period, with many Dubai hotels using this time for renovations.

“Please remember that we enjoyed years of nearly 85% occupancy in our hotels at excellent rates. We generated significant profits,” stated Mohamed Alabbar, founder of Dubai’s Emaar Properties PJSC. “A temporary pause of a few months is acceptable. We have time to maintain and refurbish our hotels.”

Residential rentals

On the rental side, home prices, which have been steadily climbing in recent years, have displayed resilience despite the war. Citywide, they have only dipped by just over 2% on average since late February, according to Prathyusha Gurrapu, head of research at property consultancy firm Cushman & Wakefield Core.

“Lease renewals are being signed at nearly the same rates as before, as many tenants prefer to avoid the costs of moving,” she stated.

Private schools, which thrived from Dubai’s expatriate influx, have had to manage periods of online learning. Before Monday’s attacks, most students had returned to classrooms across the UAE, although attendance remained inconsistent.

Consumer spending patterns are also beginning to shift.

Chipotle Mexican Grill Inc. has noted a relatively quick recovery in Kuwait and Qatar, but a slower rebound in the UAE, as reported by CEO Scott Boatwright in an interview. The UAE attracts more tourists than the other two countries.

“Most local consumers are reverting to typical behaviors,” Boatwright observed. “I believe the main challenge for the region at present is the decline in year-over-year tourism.”

In-store sales at the UAE’s primary supermarket chains fell about 7% from March 30 to April 19 compared to the previous year, according to NielsenIQ. Although online sales for these and other digital platforms saw a 15% increase, this growth was slower than the 34% growth rate prior to the conflict.

Despite the uncertainty, some executives remain hopeful. Emirates reported a profit, albeit below previous expectations.

The airline is “hopeful that this situation resolves soon, allowing us to return to our February performance levels,” said President Tim Clark.

The head of the nation’s most recognized brand took a defiant stance last month.

“I don’t foresee any changes in how we operate the airline or this model,” Clark asserted. “We’re not slowing down.”

© 2026 Bloomberg