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Gulf cities experience calm after months of Iran-related conflict, but future remains uncertain

Dubai, Doha and Abu Dhabi have returned to near-normal activity following months of fighting, yet residents and investors remain wary of what lies ahead.

After half a year of hostilities linked to the Iran war, the Gulf metropolises of Dubai, Doha and Abu Dhabi have largely resumed normal routines, with schools, businesses and tourism back in gear. A Dutch diplomatic source noted that upcoming events such as the World Investment Forum and the Formula 1 race signal a return to pre-conflict conditions. Nonetheless, the peace is tentative; President Trump has indicated no further attacks on Iran before the U.S. mid-term elections, leaving the post-election scenario unclear.

Recent Houthi missile and drone strikes on Riyadh’s airport killed at least 17 people and injured over 300, prompting airport closure and severe flight disruptions. Riyadh’s public warning system remained silent for nearly two weeks after the attacks, only resuming alerts on Monday. Qatar’s Emir has urged preparedness for adverse outcomes, reflecting broader regional concerns about maintaining confidence among citizens and investors amid lingering threats.

Why it matters

The Gulf’s economic stability hinges on how regional tensions and U.S. politics evolve.

In this story

Gulf citiesIran warU.S. mid-term electionsHouthi attacksairport closureregional stabilityeconomic confidence
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