{"id":"f-445134d771-61ec6d8f-ad64-5f49-9638-e06e19463f26","title":"Markets Shut, Capital Paused: How Iran-Israel Tensions Are Testing UAE’s Financial Hub","description":"Institutional investors are likely to continue funnelling funds into industrial parks, logistics hubs, warehouses and data centres, asset classes tied to sustained infrastructure-led demand.","timestamp":1772541420,"category":"international","headline":"Markets Shut, Capital Paused: How Iran-Israel Tensions Are Testing UAE’s Financial Hub","modifiedHeadline":"How Iran-Israel crisis testing UAE’s financial hub","subCategories":["scid_190e9d77"],"subcategoriesName":["Middle East"],"region":"IN","bundleMetaData":{"bundleId":"c80449a0-0ad6-472b-8d17-5747dd8f5c83","bundleTitle":"Around the globe","cardData":null},"iabCategoryId":"83","fcSummary":"Iran-Israel tensions are putting pressure on the UAE’s financial hub, testing investor confidence, capital flows, and the region’s economic stability.","summary":"Iran-Israel tensions are putting pressure on the UAE’s financial hub, testing investor confidence, capital flows, and the region’s economic stability.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-61ec6d8f-ad64-5f49-9638-e06e19463f26","sourceUrl":"https://www.timesnownews.com/business-economy/markets/markets-shut-capital-paused-how-iran-israel-tensions-are-testing-uaes-financial-hub-article-153742427","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/72JQdBQRZ0Y0.webp","content":"

Fresh Iranian strikes reverberated across the United Arab Emirates for a third straight day, with explosions heard in Dubai on Monday morning. The continued

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escalation has left investors weighing the fallout of a conflict that threatens supply chains, valuations and deal activity across the Gulf’s financial hub. Authorities shut stock exchanges in Dubai and Abu Dhabi for Monday and Tuesday to curb extreme swings. By evening, airports in both emirates restarted limited operations, offering a tentative sign of stabilisation. Behind the scenes, however, private equity players and corporate investors were reassessing exposure and stress-testing portfolios against short- and medium-term risks. Deal Activity Set To Cool Many private investment firms expect a temporary lull in transactions if the Iran-Israel conflict wraps up by the end of March, as indicated by US President Donald Trump. For now, most offices have shifted to remote operations while leadership teams evaluate strategy. Amit Goenka, chairman and managing director of Nisus Finance, said ina ET report, “Typically, it takes one or two quarters for business normalcy to return after a disruption of this nature. While essential services and trade services will resume quickly, the real asset market may take longer to regain momentum. From an investor standpoint, there will clearly be a wait and watch approach.” Goenka’s firm launched a $500 million Gulf-focused real estate fund in Dubai in August 2024, investing in major city assets. He noted that property prices had climbed 18–24 per cent, with annual transaction volumes expanding 32–38 per cent in recent years. “If the upcoming data shows even a temporary slowdown, investors will become more defensive because the downside risk may appear higher than the upside potential,” he said. Banks Turn Cautious Financial institutions are also taking a guarded stance, as a senior private equity executive revealed in the report, “We had scheduled several calls with banks and our limited partners (LPs) this week, but many have asked to defer discussions until the situation settles. When lenders themselves become more cautious, it usually signals that the broader economy is moving into a more defensive phase.” Limited partners are expected to pause major commitments until greater clarity emerges, with some anticipating a one- or two-quarter delay before confidence fully returns. Infrastructure Assets Despite broader caution, certain segments may remain resilient. Institutional capital is still likely to target industrial parks, logistics hubs, warehouses and data centres, assets closely linked to long-term infrastructure demand. The UAE Ministry of Defence reported intercepting nine ballistic missiles, six cruise missiles and 148 drones on Monday. Meanwhile, cloud facilities operated by Amazon in the region faced temporary power and connectivity disruptions after unidentified objects struck a UAE data centre. Airports in Dubai and Abu Dhabi resumed select passenger, cargo and repatriation flights, urging travellers to confirm departures with airlines before heading to terminals. Mohanad Yakout, senior market analyst at Scope Markets, noted in the report, “Investment firms and businesses in the UAE are approaching the current regional situation with extreme caution, shifting from growth-focused strategies to active crisis management. Firms are moving beyond short-term emergency plans, regionalising supply chains, securing inventories and activating alternative logistics routes.”

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Markets Shut, Capital Paused: How Iran-Israel Tensions Are Testing UAE’s Financial Hub

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