12 Dead, Tourism Down, Firms Go Remote: A Month Into Iran War, Is The Dubai Dream Fading?

Last Updated:April 02, 2026, 16:01 IST

With firms going remote and tourists staying away, the foundations of Dubai’s long-held promise of stability and opportunity are being tested.

Just 12 days into the US-Israel conflict against Iran, a Citibank customer in Dubai showed me a message on his phone. The bank was limiting operations amid escalating security concerns.

“The decision to evacuate three of our buildings and to temporarily close some branches is consistent with our commitment to prioritise the safety of our colleagues. All colleagues are accounted for and are safe, and we are continuing to serve our clients," the bank said on its Middle East webpage.

The businessman, whose office was next door in Dubai International Financial Centre (DIFC), hoped it would be a brief disruption — “two to three days," he said — before things returned to normal. A fortnight later, the DIFC remains far from its pre-February 28 days.

Concerns deepened after Iran issued direct threats to American-linked companies on April 1. “We advise the employees of these institutions to immediately leave their workplaces to preserve their lives," news agencies quoted the IRGC as saying.

Eighteen companies — including Amazon, Meta, Intel, Microsoft, Oracle, Tesla, Palantir and Nvidia — were named as potential targets.

In response, many firms across Dubai’s business districts have shifted to remote working. Schools, too, have extended online classes until April 17.

For Western expats, this has meant an easy exit, the ability to leave Dubai while remaining plugged into work and education systems. But for working-class migrants from South Asia, Southeast Asia and Africa, the reality is starkly different.

Shamila Ghayas Ahmed, a Dubai resident, posted about an Iranian strike in Satwa — a dense, working-class neighbourhood home to Indians, Pakistanis, Bangladeshis and Filipinos.

“There has been relentless attack on Dubai and Sharjah last night. Not only ballistic missiles and UAVs but cruise missiles too. We heard them. It is not for the faint-hearted. Satwa was targeted. Nearly 41,000 people live here… people who left their own country to make a better living in UAE," she wrote on Facebook.

Like many others, Ahmed questioned why civilians were being caught in the crossfire.

Yet leaving is not an option for many.

“Things are far worse back home. I can’t go back," said Arvinda, a Sri Lankan worker at a mobile and computer parts shop in Bur Dubai.

His colleagues — from Kenya, India, Nepal and the Philippines — nodded in unison. Returning home, they said, was not viable, even as anxious phone calls from families became a nightly routine.

For this group, economic survival outweighs security concerns. But that calculation is getting harder.

With tourism drying up, many are now staring at an uncertain future.

“You are my first passenger in two days. I have decided to go back home for now," said Awais Akhmal, a Pakistani Uber driver, as he drove along the unusually empty Abu Dhabi–Dubai highway.

A Hyderabadi waiter at my hotel echoed the anxiety.

“We’ve been told eight days’ salary will be deducted this month because occupancy is so low. But rent and living costs remain the same. I’ll take my annual leave now and see how it goes," he said, requesting anonymity.

Meanwhile, fuel prices in the UAE are expected to rise by more than 30 per cent in April.

As of April 1, Iran has reportedly launched 438 ballistic missiles, 19 cruise missiles and over 2,000 UAVs targeting the UAE. Key sites, including Fujairah port, Ras Al Khaimah and even Dubai airport — the world’s busiest transit hub — have come under repeated strikes.

At least 12 people, including defence personnel, have been killed, and close to 200 residents of various nationalities have been injured.

So, is the Dubai dream over? Not quite.

Russian national Natalia Gorbatyuk and her Turkish partner disagree. “The rains scared us more than the missiles," they told The National. “Getting married in our respective countries was complicated, so we chose the UAE."

According to the report, more than 70 marriages are being registered daily at Abu Dhabi’s marriage office — about 20 per cent higher than in 2025, with most applicants being non-Emiratis.

The answer, then, appears less dramatic. The Dubai dream is not over, but it is on pause.

For now, it is a city waiting, watching, nervous but far from giving up on its dreams.

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