UAE Economy Keeps Growing Despite Ongoing Regional Conflict

Despite a seven-month-old regional war, the UAE’s economy shows resilience, with Abu Dhabi’s sovereign wealth funds still investing heavily and Gulf-focused Wall Street banks expanding their local teams. Education demand remains high: GEMS Education reports a gradual return of students and private-school enrollments are up about 7%, while seven new schools added 17,000 places, including branches of Harrow and Rugby School.

Financial centres such as Dubai International Financial Centre and Abu Dhabi Global Market have surpassed 10,000 active firms and issued nearly 2,000 new licences respectively. Tourism and real estate face headwinds—airport passenger numbers fell, hotel occupancy dropped to roughly 64% in August, and property sales slowed—but incentives and a “Zero Hormuz” infrastructure plan aim to offset higher import and fuel costs.

Recruiters note that firms are offering larger relocation packages rather than embedding geopolitical risk into salaries, and demand for AI talent stays strong. Overall, the UAE’s low-tax, high-infrastructure model continues to attract expatriates and capital, supporting a projected rebound in GDP growth by 2027.