Asian firms that use Dubai as a launch pad into the Middle East are weighing new threats to liquidity, logistics and confidence
3-MIN READ3-MIN ListenBiman MukherjiPublished: 3:00pm, 11 Apr 2026Updated: 3:04pm, 11 Apr 2026Asian digital entrepreneurs that once saw Dubai as a safe, well-connected base for global expansion are now reassessing that view after the US-Israel war on Iran exposed vulnerabilities in the city’s appeal as a financial and technology hub.For many investors and founders from India, China and Southeast Asia, the strain is not just about physical security but also about what disruption around the Strait of Hormuz has revealed about liquidity, credit and market confidence.Dubai has in recent years positioned itself as a premier global hub for digital businesses focused on technologies such as artificial intelligence, fintech and blockchain, helped by policies including 100 per cent foreign ownership and tax incentives.
But the Iran conflict – during which Tehran has targeted cities such as Dubai and Abu Dhabi with drone and missile attacks – has left many businesses facing not only a security threat, but also higher borrowing costs and greater uncertainty over capital flows, analysts said.
Will the war in Iran leave Asian airlines grounded?