UAE’s Boom Faces a Wartime Test

Summary

Bloomberg's Zainab Fattah reports that the UAE economy has remained surprisingly resilient despite a regional war, with active retail, growing schools, continuing Abu Dhabi wealth-fund investment, and a real estate correction that is shallower than feared. However, the conflict still weighs on the region: Jebel Ali port is operating below normal, Gulf oil shipments are down, and the 'no peace, no war' environment is a risk. Iran-Saudi hedging at the BRICS meeting is seen as an effort to contain escalation.

• UAE economy has shown surprising resilience during the regional war.
• Dubai retail, restaurants, and schools remain active despite earlier departures.
• Abu Dhabi wealth funds continue investing billions.
• Dubai real estate correction has accelerated but remains less severe than prior downturns.
• Jebel Ali port is not operating normally, and Gulf oil shipments are far below prior levels.
• The 'no peace, no war' environment still weighs on investment decisions.
• Iran-Saudi meeting at BRICS is seen as hedging to contain escalation.