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Straits Times
12 hours ago
- Business
- Straits Times
Dubai and Abu Dhabi's haven status tested by Middle East crisis
In Dubai, bankers were quick to relay optimism that the UAE would sidestep any major fallout. PHOTO: AFP – The United Arab Emirates has managed to thrive during global instability, drawing capital during the Arab Spring, opening up quickly during the Covid-19 pandemic, and attracting Russian money after Moscow's invasion of Ukraine. But the Iran-Israel confrontation, which involved the US, poses one of the most stringent tests yet to the country's neutral and open-for-business stance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Economic Times
a day ago
- Business
- Economic Times
Dubai and Abu Dhabi's haven status tested by Mideast crisis
iStock The United Arab Emirates has managed to thrive during global instability, drawing capital during the Arab Spring, opening up quickly during the pandemic and attracting Russian money after Moscow's invasion of Ukraine. But the Iran-Israel confrontation, which involved the US, poses one of the most stringent tests yet to the country's neutral and open-for-business stance. By Tuesday morning, just hours after Iran hit a US base in nearby Qatar and the UAE briefly closed its airspace, it was already business as usual in the financial centers of Dubai and Abu Dhabi. ALSO READ: UAE sees surge in foreign-owned real estate firms An executive at one of Abu Dhabi's wealth funds said it was proceeding as planned with deals and investments, even encouraging foreign executives to visit for meetings. In Dubai, bankers were quick to relay optimism that the UAE would sidestep any major fallout. But while a ceasefire announced by US President Donald Trump appears to be holding, some executives acknowledge an undercurrent of nervousness because the geopolitical risks of the Middle East have come so sharply to the fore. ALSO READ: Big changes ahead in passports for Indians in UAE in 2025 The stakes for the global financial community are particularly high in the UAE, which has attracted international billionaires looking to safeguard their wealth as well as Wall Street banks and hedge funds looking to expand. Abu Dhabi has been on a dealmaking spree with its $1.7 trillion sovereign wealth pile. Meanwhile, Dubai's property prices have surged 70% over four years propelled by buyers from around the world. 'I think the current situation is contained. But what happened is significant — it's a signal that no action is off-limits anymore,' said Hussein Nasser-Eddin, chief executive of Dubai-based security services provider Crownox, referring to the attack in Qatar, which like the UAE is a long-time ally of the US. ALSO READ: UAE Golden Visa vs Trump's EB-5: Which one fits your residency goals? Nasser-Eddin said his firm — which provides travel security, protective and risk advisory services — has seen a rise in contingency planning requests in the Gulf in the last couple days. Companies have asked for details of Crownox's cross-border capabilities, essentially wanting to know if it could 'save the day' if things went wrong, he said. Even such lingering concerns haven't been enough to deter those investing or living in the UAE. More than a dozen bankers, hedge fund and sovereign wealth fund executives interviewed by Bloomberg News said they haven't seen signs of capital flight or firms considering a pullback. They asked not be named because they weren't authorized to speak to the media. UAE stocks, which sank at the outbreak of the Israeli strikes on Iran, have not just recouped those losses but scaled new highs in tandem with US stocks. Dubai's equity benchmark is trading almost 3% higher than before the conflict, reaching the highest level since the 2008 global financial crisis. Abu Dhabi's index has added more than 1% and is at the highest since January. Both indexes are rising faster than the global benchmark MSCI ACWI. 'I believe that the safe-haven status will continue, the macro story remains robust and the reform program compelling. We continue to expect capital and population inflows in the medium-term,' Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC, said about the UAE. 'The fact that there were no economic disruptions and the ceasefire are positive.' Historically, Dubai has benefitted from periods of unrest not just regionally but elsewhere too. Most recently, after the invasion of Ukraine in 2022, some Russians bought Dubai real estate. Property prices have been shooting up since the pandemic. Still, the emirate's population is largely made of expatriates and any pullback from them would also dent the housing market, which makes up more than a third of the city's gross domestic product.'We had a period of 48 hours where buyers were reluctant to pull the trigger,' said Myles Bush, chairman of brokerage Phoenix Homes. 'However, now it's business as usual and buyer confidence has bounced back.'While market sentiment hasn't been affected so far, a resumption of hostilities may shake confidence, said Anna Kirichenko, a property broker who has worked in Dubai since is also the potential for other economic fallout. Despite airspace closures ending and the ceasefire, several global airlines are still avoiding Dubai to ensure the safety of crew and passengers amid geopolitical tensions. Among them are Singapore Airlines, Air India Ltd. and United Airlines Holdings Inc. The aviation sector supported 27% of Dubai's GDP in 2023, according to a report by Emirates, contributing nearly $40 billion to the city's economy. Dubai and Abu Dhabi have in recent years attracted expatriates and financial firms partly because of the UAE's easy visa policies, low taxes and convenient time zone between East and West. The regulator for Dubai's financial center said it had contacted a number of firms, who reported normal business activity.A management consultant said it would take a far more devastating strike — such as one on a population center — to derail the UAE's haven status and its internationalization drive. IPO bankers in the UAE have said that their post-summer pipeline hasn't been affected by the geopolitical turmoil. Even in nearby Doha, the capital of Qatar, one banker said work had resumed as if the attack on the US base had never taken place. To be sure, plenty of risks remain. Even after the truce was announced, there appeared to be early breaches by both sides that caused Trump to issue angry warnings. US intelligence findings have also shown that American air strikes had only a limited impact on Iran's nuclear program, while Trump has maintained the sites were completely destroyed. Still, executives were reassured because Iran appeared to have provided warnings before the attack and the UAE — which also houses US military personnel — wasn't targeted. The chain of events suggests that officials in the Gulf had been able to manage the crisis from behind the scenes, one Dubai-based portfolio manager Moelis, the veteran Wall Street dealmaker with close ties to the Middle East, characterized turbulence in the region as an opportunity for one of the most optimistic changes in the Gulf for a long time. He highlighted opportunities such as the potential impact of unlocking Iranian oil reserves and opening up the country's labor market, assuming sanctions are lifted.'All I hear about is what if the peace doesn't hold,' Moelis said in an interview on Bloomberg Television Wednesday. 'I haven't heard one person say, 'What if the 90 million population of highly educated motivated Iranians come into the market?'' (Join our ETNRI WhatsApp channel for all the latest updates) Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Profits plenty, prices attractive, still PSU stocks languish. Why? Why Sebi must give up veto power over market infra institutions Oil, war, and the Hormuz gambit: Why the 2025 standoff won't mirror the 2022 shock! Second only to L&T, but controversies may weaken this infra powerhouse's growth story Stock Radar: Titan Company bounces back after testing 200-DMA in June; breaks out from 1-month consolidation – what should investors do? 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Time of India
a day ago
- Business
- Time of India
Dubai and Abu Dhabi's haven status tested by Mideast crisis
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The United Arab Emirates has managed to thrive during global instability, drawing capital during the Arab Spring, opening up quickly during the pandemic and attracting Russian money after Moscow's invasion of the Iran-Israel confrontation, which involved the US, poses one of the most stringent tests yet to the country's neutral and open-for-business Tuesday morning, just hours after Iran hit a US base in nearby Qatar and the UAE briefly closed its airspace, it was already business as usual in the financial centers of Dubai and Abu executive at one of Abu Dhabi's wealth funds said it was proceeding as planned with deals and investments, even encouraging foreign executives to visit for meetings. In Dubai, bankers were quick to relay optimism that the UAE would sidestep any major while a ceasefire announced by US President Donald Trump appears to be holding, some executives acknowledge an undercurrent of nervousness because the geopolitical risks of the Middle East have come so sharply to the stakes for the global financial community are particularly high in the UAE, which has attracted international billionaires looking to safeguard their wealth as well as Wall Street banks and hedge funds looking to expand. Abu Dhabi has been on a dealmaking spree with its $1.7 trillion sovereign wealth pile. Meanwhile, Dubai's property prices have surged 70% over four years propelled by buyers from around the world.'I think the current situation is contained. But what happened is significant — it's a signal that no action is off-limits anymore,' said Hussein Nasser-Eddin, chief executive of Dubai-based security services provider Crownox, referring to the attack in Qatar, which like the UAE is a long-time ally of the said his firm — which provides travel security, protective and risk advisory services — has seen a rise in contingency planning requests in the Gulf in the last couple days. Companies have asked for details of Crownox's cross-border capabilities, essentially wanting to know if it could 'save the day' if things went wrong, he such lingering concerns haven't been enough to deter those investing or living in the UAE. More than a dozen bankers, hedge fund and sovereign wealth fund executives interviewed by Bloomberg News said they haven't seen signs of capital flight or firms considering a pullback. They asked not be named because they weren't authorized to speak to the stocks, which sank at the outbreak of the Israeli strikes on Iran, have not just recouped those losses but scaled new highs in tandem with US stocks. Dubai's equity benchmark is trading almost 3% higher than before the conflict, reaching the highest level since the 2008 global financial crisis. Abu Dhabi's index has added more than 1% and is at the highest since January. Both indexes are rising faster than the global benchmark MSCI ACWI.'I believe that the safe-haven status will continue, the macro story remains robust and the reform program compelling. We continue to expect capital and population inflows in the medium-term,' Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC, said about the UAE. 'The fact that there were no economic disruptions and the ceasefire are positive.'Historically, Dubai has benefitted from periods of unrest not just regionally but elsewhere too. Most recently, after the invasion of Ukraine in 2022, some Russians bought Dubai real estate. Property prices have been shooting up since the pandemic. Still, the emirate's population is largely made of expatriates and any pullback from them would also dent the housing market, which makes up more than a third of the city's gross domestic product.'We had a period of 48 hours where buyers were reluctant to pull the trigger,' said Myles Bush, chairman of brokerage Phoenix Homes. 'However, now it's business as usual and buyer confidence has bounced back.'While market sentiment hasn't been affected so far, a resumption of hostilities may shake confidence, said Anna Kirichenko, a property broker who has worked in Dubai since is also the potential for other economic fallout. Despite airspace closures ending and the ceasefire, several global airlines are still avoiding Dubai to ensure the safety of crew and passengers amid geopolitical tensions. Among them are Singapore Airlines, Air India Ltd. and United Airlines Holdings Inc. The aviation sector supported 27% of Dubai's GDP in 2023, according to a report by Emirates, contributing nearly $40 billion to the city's and Abu Dhabi have in recent years attracted expatriates and financial firms partly because of the UAE's easy visa policies, low taxes and convenient time zone between East and West. The regulator for Dubai's financial center said it had contacted a number of firms, who reported normal business activity.A management consultant said it would take a far more devastating strike — such as one on a population center — to derail the UAE's haven status and its internationalization drive. IPO bankers in the UAE have said that their post-summer pipeline hasn't been affected by the geopolitical turmoil. Even in nearby Doha, the capital of Qatar, one banker said work had resumed as if the attack on the US base had never taken be sure, plenty of risks remain. Even after the truce was announced, there appeared to be early breaches by both sides that caused Trump to issue angry warnings. US intelligence findings have also shown that American air strikes had only a limited impact on Iran's nuclear program, while Trump has maintained the sites were completely executives were reassured because Iran appeared to have provided warnings before the attack and the UAE — which also houses US military personnel — wasn't targeted. The chain of events suggests that officials in the Gulf had been able to manage the crisis from behind the scenes, one Dubai-based portfolio manager Moelis, the veteran Wall Street dealmaker with close ties to the Middle East, characterized turbulence in the region as an opportunity for one of the most optimistic changes in the Gulf for a long time. He highlighted opportunities such as the potential impact of unlocking Iranian oil reserves and opening up the country's labor market, assuming sanctions are lifted.'All I hear about is what if the peace doesn't hold,' Moelis said in an interview on Bloomberg Television Wednesday. 'I haven't heard one person say, 'What if the 90 million population of highly educated motivated Iranians come into the market?''
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Business Standard
2 days ago
- Business
- Business Standard
Dubai, Abu Dhabi remain calm, thrive amid Iran-Israel tensions
The United Arab Emirates has managed to thrive during global instability, drawing capital during the Arab Spring, opening up quickly during the pandemic and attracting Russian money after Moscow's invasion of Ukraine. But the Iran-Israel confrontation, which involved the US, poses one of the most stringent tests yet to the country's neutral and open-for-business stance. By Tuesday morning, just hours after Iran hit a US base in nearby Qatar and the UAE briefly closed its airspace, it was already business as usual in the financial centers of Dubai and Abu Dhabi. An executive at one of Abu Dhabi's wealth funds said it was proceeding as planned with deals and investments, even encouraging foreign executives to visit for meetings. In Dubai, bankers were quick to relay optimism that the UAE would sidestep any major fallout. But while a ceasefire announced by US President Donald Trump appears to be holding, some executives acknowledge an undercurrent of nervousness because the geopolitical risks of the Middle East have come so sharply to the fore. The stakes for the global financial community are particularly high in the UAE, which has attracted international billionaires looking to safeguard their wealth as well as Wall Street banks and hedge funds looking to expand. Abu Dhabi has been on a dealmaking spree with its $1.7 trillion sovereign wealth pile. Meanwhile, Dubai's property prices have surged 70% over four years propelled by buyers from around the world. 'I think the current situation is contained. But what happened is significant — it's a signal that no action is off-limits anymore,' said Hussein Nasser-Eddin, chief executive of Dubai-based security services provider Crownox, referring to the attack in Qatar, which like the UAE is a long-time ally of the US. Nasser-Eddin said his firm — which provides travel security, protective and risk advisory services — has seen a rise in contingency planning requests in the Gulf in the last couple days. Companies have asked for details of Crownox's cross-border capabilities, essentially wanting to know if it could 'save the day' if things went wrong, he said. Even such lingering concerns haven't been enough to deter those investing or living in the UAE. More than a dozen bankers, hedge fund and sovereign wealth fund executives interviewed by Bloomberg News said they haven't seen signs of capital flight or firms considering a pullback. They asked not be named because they weren't authorized to speak to the media. UAE stocks, which sank at the outbreak of the Israeli strikes on Iran, have not just recouped those losses but scaled new highs in tandem with US stocks. Dubai's equity benchmark is trading almost 3% higher than before the conflict, reaching the highest level since the 2008 global financial crisis. Abu Dhabi's index has added more than 1% and is at the highest since January. Both indexes are rising faster than the global benchmark MSCI ACWI. 'I believe that the safe-haven status will continue, the macro story remains robust and the reform program compelling. We continue to expect capital and population inflows in the medium-term,' Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC, said about the UAE. 'The fact that there were no economic disruptions and the ceasefire are positive.' Historically, Dubai has benefitted from periods of unrest not just regionally but elsewhere too. Most recently, after the invasion of Ukraine in 2022, some Russians bought Dubai real estate. Property prices have been shooting up since the pandemic. Still, the emirate's population is largely made of expatriates and any pullback from them would also dent the housing market, which makes up more than a third of the city's gross domestic product. 'We had a period of 48 hours where buyers were reluctant to pull the trigger,' said Myles Bush, chairman of brokerage Phoenix Homes. 'However, now it's business as usual and buyer confidence has bounced back.' While market sentiment hasn't been affected so far, a resumption of hostilities may shake confidence, said Anna Kirichenko, a property broker who has worked in Dubai since 2007. There is also the potential for other economic fallout. Despite airspace closures ending and the ceasefire, several global airlines are still avoiding Dubai to ensure the safety of crew and passengers amid geopolitical tensions. Among them are Singapore Airlines, Air India Ltd. and United Airlines Holdings Inc. The aviation sector supported 27% of Dubai's GDP in 2023, according to a report by Emirates, contributing nearly $40 billion to the city's economy. Dubai and Abu Dhabi have in recent years attracted expatriates and financial firms partly because of the UAE's easy visa policies, low taxes and convenient time zone between East and West. The regulator for Dubai's financial center said it had contacted a number of firms, who reported normal business activity. A management consultant said it would take a far more devastating strike — such as one on a population center — to derail the UAE's haven status and its internationalization drive. IPO bankers in the UAE have said that their post-summer pipeline hasn't been affected by the geopolitical turmoil. Even in nearby Doha, the capital of Qatar, one banker said work had resumed as if the attack on the US base had never taken place. To be sure, plenty of risks remain. Even after the truce was announced, there appeared to be early breaches by both sides that caused Trump to issue angry warnings. US intelligence findings have also shown that American air strikes had only a limited impact on Iran's nuclear program, while Trump has maintained the sites were completely destroyed. Still, executives were reassured because Iran appeared to have provided warnings before the attack and the UAE — which also houses US military personnel — wasn't targeted. The chain of events suggests that officials in the Gulf had been able to manage the crisis from behind the scenes, one Dubai-based portfolio manager said. Ken Moelis, the veteran Wall Street dealmaker with close ties to the Middle East, characterized turbulence in the region as an opportunity for one of the most optimistic changes in the Gulf for a long time. He highlighted opportunities such as the potential impact of unlocking Iranian oil reserves and opening up the country's labor market, assuming sanctions are lifted. 'All I hear about is what if the peace doesn't hold,' Moelis said in an interview on Bloomberg Television Wednesday. 'I haven't heard one person say, 'What if the 90 million population of highly educated motivated Iranians come into the market?'' (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
New Statesman
3 days ago
- Politics
- New Statesman
Letter of the week: Small government
Photo by Mike Kipling Photography / Alamy Andrew Marr writes of 'the spreading perception that democratic politics is failing' (Politics, 20 June), but makes no mention of the one issue I would suggest is key to this: illegal immigration, and the small-boats 'crisis' in particular. This is not to do with the actual number of arrivals, which is tiny compared to other forms of immigration, but the failure of successive administrations to solve this issue, which feeds a crisis in trust. It reminds me of a story told about the former Labour MP Lena Jeger when she was campaigning in 1953 in Holborn and St Pancras. For Jeger, the issue of the day was the rearmament of West Germany. When canvassing in a block of council flats, she noticed the smell of urine in the lift. One woman listened patiently to Jeger's pitch about the folly of rearming the Germans, and then asked whether she'd used the lift. 'Stinks of pee, doesn't it? Can't you stop 'em peeing in our lift?' 'I don't think I can,' replied Jeger. 'Well,' said the woman, 'if you can't stop 'em peeing in our lift, how can you expect me to believe you can stop the Germans rearming?' If the Labour government cannot resolve the small-boats issue, then talk of all the other areas and initiatives mentioned by Marr will be for nought. Daniel Callaghan, Ealing, London W13 New times, new thinking Once again the New Statesman has shown how change can be managed: under a new editor the best of the old, expansion of the familiar, immensely welcome new contributors, thoughtful focus on new ideas, but no drastic alterations to the trusted formula of more than a century. Veronica Baker-Smith, Pangbourne, Berks Light touch The latest Sketch piece by Matt Chorley (20 June) tickled me pink. After years of doom and gloom in the news, and cancel culture bottling up comedians, a piece that evenly takes a dig at all sides is a welcome relief. More servings of mirth and terrible puns please. Charles Lambert, London SW15 Cautious optimism David Miliband (World View, 13 June) describes a Damascus ice cream store being as 'packed as it was… in 2008'. Bashar al-Assad kept Syria together and reasonably well off until the Arab Spring. The new regime will face the same problem as him: some opposition will be seen as dangerous and have to be suppressed. For a while the country, exhausted by war, will be quiet, but every government resists being overthrown. Let us hope Syria succeeds where so many have failed. Alice Edwards, Wokingham, Berks Breakfast of champions Pescatarian Keir Starmer (Cover Story, 13 June) must have had an alternative motive for his breakfast choice of 'plain, untouched baked beans', as I am sure the Royal Navy could have furnished him with eggs, mushrooms, grilled tomatoes and potentially even hash browns. A sign of a return to austerity, perhaps? Colin Paine, Horsforth, Leeds Subscribe to The New Statesman today from only £8.99 per month Subscribe Literature's last stand Hearty congratulations to James Marriott for his brilliant article on the decline of literature (The New Society, 13 June). His remark to his interviewers at Oxford, that 'literature shows us what it is or might be to be human', is spot on: certainly Dickens, TS Eliot and George Eliot, to name just a few, have taught me far more about that than the 'vulgar parvenu' of psychology, which I studied in the 1960s. I looked upon those people who studied English with envy. The fate of literature may not be the cause of catastrophe in our civilisation, or vice versa, but, as Marriott says, I too fear they might be coterminous. Nigel Austin, Dorchester, Dorset Power of writing Reading Pippa Bailey's Deleted Scenes (20 June) on the death of her father brought tears to my eyes. It was a deeply moving account of personal loss that also managed to be universal. It cannot have been an easy piece to write, but I am so glad she did and shared it with us. Honest, powerful and underlying the importance of human connections – writing like this is why I read the New Statesman. Thank you. John Adcock, Ashtead, Surrey Lezard spins eternal Returning to the New Statesman after several years, I was pleased to find that, in a world getting madder by the day, Lezard remains, spinning, as always, a thread of comforting continuity. Wonderful. Patrick O'Brien, Capel Seion, Aberystwyth Write to letters@ We reserve the right to edit letters [See also: Keir Starmer faces war on all fronts] Related
