The UAE economy maintains its momentum despite security tensions: Global companies continue to invest and resort to flexible operating arrangements

Dubai, UAE – Amidst reports circulating about the closure of some international companies’ offices in the UAE and the adoption of flexible work arrangements by others in Dubai, “Voice Of Emirates” investigated official statements issued by the companies themselves. It also verified publicly available information regarding some temporary operational measures. The review revealed a more balanced picture than the prevailing narrative. What occurred at some institutions falls within the framework of business continuity and risk management plans. These plans included remote work or the temporary closure of some office locations. Therefore, this does not amount to a complete business closure or withdrawal from the UAE market. On the contrary, official indicators from international companies continue to reflect ongoing confidence in the UAE economy. They also reflect continued investment and expansion in Dubai and the UAE.

Working remotely in Dubai: A precautionary measure that doesn’t amount to a lockdown

Operationally, the move by some global institutions to remote work or the reorganization of their presence in some Dubai offices reflects a standard precautionary approach to ensure employee safety and business continuity. Reuters reported on March 2, 2026, that Citi had asked most of its employees in the Gulf to work from home until further notice. The Wall Street Journal also reported on March 11 that a Citi spokesperson confirmed the bank had evacuated three buildings in the UAE as a precautionary measure, adding that all employees were safe. Standard Chartered posted a notice on its UAE website announcing the temporary closure of its Priority Private Center in the bank’s tower and its Jebel Ali branch until further notice, effective March 2, 2026. These events support the characterization of these actions as temporary operational arrangements and do not indicate a complete shutdown or evacuation from the UAE.

Global companies’ confidence in the UAE economy remains high

The latest official data from global consulting firms paints a clear picture of continued confidence in the UAE economy. PwC reported that 91% of CEOs in the UAE expect the country’s economic growth to strengthen over the next twelve months. The report also highlighted the attractiveness of investment, capital inflows, and the accelerating adoption of artificial intelligence. This type of indicator is crucial for understanding the UAE’s economic situation, as it reflects the business sentiment of major companies operating in the market, rather than simply media speculation or general impressions.

Growth prospects in the UAE remain supportive of activity

In a broader economic analysis, Mastercard Economics Institute forecasts that the UAE economy will grow by approximately 4.3% in 2026, with non-oil growth approaching 5% across the GCC. The institute added that the impact of investment and digital transformation will continue to support economic activity. It also noted that small and medium-sized enterprises (SMEs) account for slightly more than 37% of retail spending in the UAE, reflecting a broad base of domestic demand and the continued dynamism of the non-oil economy.

Global companies in the UAE continue to invest and expand

Official data from the companies themselves does not reflect a downsizing of their presence in the UAE, but rather a continuation of expansion. DHL announced an investment exceeding €500 million in the Middle East between 2024 and 2030. This is accompanied by a strategic focus on Saudi Arabia and the UAE. The company explained that the investment aims to enhance its logistics infrastructure, networks, and operational capabilities.

In the hospitality sector, IHG announced the launch of Kimpton Dubai as its first hotel in the UAE. It also noted that it has more than 122 hotels and approximately 44,000 rooms across nine countries in the Middle East.

Furthermore, Standard Chartered announced the opening of its first Priority Private Center for the Middle East, Europe, and Africa in Dubai in 2025. It also expanded its private banking team in the UAE by 20%. Therefore, these long-term decisions make talk of a widespread exodus of global companies from the UAE inconsistent with what these companies are officially announcing.

The business market in Dubai and Abu Dhabi remains resilient

CBRE’s data for the UAE confirms that the underlying operating environment remains strong. The firm stated that the country’s non-oil economy continued to grow, with office occupancy reaching 95% in Dubai and 98% in Abu Dhabi, and annual rents rising by 18% and 12%, respectively. It also noted that the average hotel occupancy rate nationwide exceeded 80%. The industrial and logistics market continued to expand, supported by demand and a limited supply of high-quality materials. Consequently, these indicators suggest that Dubai’s economy and the UAE’s business environment maintain clear momentum, despite increased operational caution in some sectors.

The real pressure is evident in shipping and supply chains

If there is a direct and obvious impact of the current security situation, it is concentrated in transportation, shipping, and supply chains. DHL, in its UAE update, stated that the closure of airspace in parts of the Middle East and the suspension of maritime traffic through the Strait of Hormuz have affected passenger and cargo traffic, and that the company has activated contingency plans to mitigate the impact.

FedEx confirmed that it has activated precautionary plans to ensure the safe continuation of operations, with pickup and delivery services remaining in place in accordance with local regulations, although transit times for some shipments may be extended.

Maersk also explained that 20% of the world’s fuel passes through the Strait of Hormuz. It further indicated that the current situation has affected global access to fuel. Consequently, this has led it to implement an emergency increase in shipping/fuel rates. It has also taken additional operational measures to protect its network.

Why doesn’t the departure of global companies from the UAE seem like an imminent option?

Based on this official data, a large-scale exodus of global companies from the UAE appears highly unlikely at this stage. Companies are reporting multi-year investments and expansions in teams and services. They also cite strong demand for office space, hotels, and logistics services. Furthermore, recent actions focus more on risk management and operational flexibility than on reducing their presence within the country. Therefore, remote work in Dubai or the temporary closure of some office locations should be interpreted as part of business continuity, not as a sign of lost confidence in the UAE economy or an intention to leave the market. This is an analytical conclusion based on the companies’ own statements regarding investment, expansion, and continued service provision.

Summary

The main conclusion of this report, based on official data from global companies, is that the UAE economy is not currently facing a wave of complete shutdowns or a mass withdrawal of international firms from the Emirates. What is happening is a combination of operational flexibility and risk management in some offices, alongside a clear continuation of confidence, investment, and economic activity in Dubai and the UAE. Meanwhile, the most obvious short-term challenge remains related to shipping, supply chains, and regional operating costs, rather than the attractiveness of the UAE market itself. Therefore, the most accurate and professional assessment is that the UAE is undergoing a phase of operational adaptation under regional security pressures, not a phase of structural economic decline.