Business as Usual in the UAE

The Question Every Business Owner Is Asking

Since the escalation of the current conflict, and following reports of drone and missile activity in the region, business owners have been asking the same question: Does this affect my company in the UAE, and should I still proceed with my plans to set up or expand there?

The short answer is that day-to-day business operations in the UAE have continued without structural disruption. But that answer deserves context, because the situation is more nuanced than a simple yes-or-no.

What Actually Happened

In late February 2026, Iran launched ballistic missiles and drones toward Gulf infrastructure. The UAE’s air defence systems intercepted the large majority of incoming threats. There were brief disruptions to flight operations at DXB (Dubai International Airport), limited to a period of several days before operations resumed. The DFM (Dubai Financial Market) closed for two sessions. Essential infrastructure, banking systems, and business operations remained functional throughout.

By the second week of March, flights had resumed, markets had reopened, and the broader business environment had returned to normal functioning. The UAE government communicated clearly and consistently throughout, emphasising the country’s stability and its continued openness to business and investment.

Licenses, Visas, and Company Operations

There has been no suspension of trade license issuance, company formation processes, or free zone operations. Businesses that were in the process of setting up a mainland or free zone company during this period have been able to continue without delays attributed to the conflict. The DET (Department of Economy and Tourism) and the relevant free zone authorities have remained operational.

Visa services have also continued, though the ICP introduced specific temporary measures to accommodate residents who were unable to return before their visa expiry dates due to the conflict. Those measures are addressed separately in our article on the entry permit waiver.

Banking operations remained stable. The AED peg to the USD held throughout the period, maintaining currency stability for international businesses operating in or transacting with the UAE.

What Changed: Sentiment, Not Structure

What the conflict has changed is sentiment, not the underlying business environment. Some investors and business owners are taking longer to make decisions. Some transactions that were due to close in early March were deferred. Inquiry levels across certain sectors dropped in the immediate aftermath of the escalation.

However, this is a sentiment-driven reaction, not a structural one. The fundamentals that make the UAE an attractive place to do business have not changed. The tax environment, regulatory framework, banking infrastructure, and residency options remain intact. Companies already established in the UAE have continued to trade normally.

The UAE’s Diplomatic Position

One factor relevant to international businesses, particularly those with clients or supply chains on both sides of the conflict, is the UAE’s diplomatic positioning. The UAE has maintained working relationships across the full spectrum of parties involved in the regional situation. It has not taken a partisan position in the conflict. This matters commercially, because it means the UAE is unlikely to become subject to the kind of secondary sanctions or trade restrictions that can affect countries that align openly with one side.

For international companies that trade with, or source from, a range of markets across the region, this neutrality is commercially significant.