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 — and Iran’s chokehold on the Strait of Hormuz — have more than halved the Emirates’ exports of crude oil and natural gas.
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 — even if a shaky ceasefire holds.
Emirati officials’ increasingly accuse Iran of piracy and even terrorism, while threatening to take military action.
May 19, 2026 13:21
UAE's image as West Asian haven tested by Iran war
The United Arab Emirates for decades has advertised itself as a haven for international business in West Asia awash in violent upheaval. Those waves have now crashed into this nation, testing its economic model like never before.
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 — and Iran’s chokehold on the Strait of Hormuz — have more than halved the Emirates’ exports of crude oil and natural gas. Its tourism and conference sectors have also suffered.
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.
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 — even if a shaky ceasefire holds.
Because the Emirates boasts a large surplus of cash, the war’s 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.
Emirati officials’ increasingly accuse Iran of piracy and even terrorism, while threatening to take military action. -- AP
