Iran war turns Dubai into a ghost city

[analyse_image type=”featured” src=”https://static.dw.com/image/76426296_6.jpg”]

10 images

https://p.dw.com/p/5AnJh

Normally, tourists would be thronging Dubai’s Al-Seef market. But since the start of the US-Israel war with Iran, tourism in the popular Gulf metropolis has collapsed dramatically.

For decades, an unwritten rule applied to Dubai, the playground of the superrich: no matter what conflicts shook the Middle East, they stopped at the emirate’s borders. This certainty, however, has been shattered since the beginning of the war. Iranian retaliatory strikes against US allies in the Gulf region have driven foreigners away.

Several Gulf states have reported repeated missile and drone attacks on their territory since the start of the US-Israeli conflict with Iran on February 28, targeting oil facilities and US embassies, as well as civilian areas such as hotels. In Dubai, a drone strike set fire to a fuel depot near the airport on Monday, shrouding the city skyline in smoke.

Dubai airport is the region’s busiest hub for international flights — yet passenger planes have frequently been grounded. Other airports in the Gulf region have also been partially closed, or are operating with limited capacity since the start of the war, due to repeated Iranian drone and missile attacks.

Seagulls frolicking in front of Dubai’s newest luxury hotel, the Jumeirah Marsa Al Arab, have the beach to themselves. The World Travel & Tourism Council estimates the Gulf region is losing at least $600 million a day due to the collapse in travel. Tourism is one of the economic pillars of the United Arab Emirates, accounting for around 12% of its gross domestic product in 2025.

It’s also a hard blow for hotels, restaurants and shops — including this shop worker at Al-Seef market, normally one of Dubai’s main tourist areas. The conflict with Iran is not only causing financial losses but also severely damaging the region’s reputation.

For years, the Gulf region, and Dubai in particular, cultivated its image as a safe haven for investors, businesses and the international jet set, preparing for a post-oil future. In 2025 alone, around 9,800 millionaires moved to the United Arab Emirates — more than to any other country in the world.

Dubai is one of the world’s wealthiest cities: extensive tax breaks, streamlined bureaucracy and the so-called golden visa program have made it popular with rich foreigners and businesses alike. But now, the usually bustling streets of the Jumeirah Beach Residence, a residential and hotel complex directly on the Persian Gulf, are deserted.

Industry analysts believe the duration of the war will be crucial in determining the extent of the reputational damage and how quickly investors withdraw. “It’s hard to overstate the peril for Dubai’s economic
model,” Jim Krane of Rice University’s Baker Institute told the Reuters news agency. “The longer the war continues, the more intense the search will be for alternative locations.”

But some believe not all is not lost. “Tourists have short memories,” Jürgen Schmude, president of the German Society for Tourism Studies, told public broadcaster ZDF. If a conflict or war doesn’t last too long, he said, the destination country won’t suffer any major disadvantages.

[analyse_source url=”https://www.dw.com/en/iran-war-turns-dubai-into-a-ghost-city/g-76454537″]


Analyse


2026-03-24 14:32:29

Post already analysed. But you can request a new run: Do the magic.