Criticism of Trump Mounts in the UAE as Iran Barrage Continues

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(Bloomberg) — People in the United Arab Emirates, including a prominent businessman, are beginning to criticize the US as Iran’s barrage of missiles and drones on Gulf states continues, roiling the region’s financial markets and economies.

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The UAE has been among US President Donald Trump’s staunchest allies, pledging about $1.4 trillion in investments and cultivating commercial ties with his family. That relationship appears to have given Abu Dhabi little influence over the conflict.

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“Who gave you the authority to drag our region into a war with Iran? And on what basis did you make this dangerous decision?” Khalaf Al Habtoor, a Dubai billionaire and hotel tycoon, said in a post on X on March 5. “You have placed the countries of the Gulf Cooperation Council and the Arab countries at the heart of a danger they did not choose.”

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The UAE has faced the brunt of Iran’s retaliatory missile and drone attacks in the Gulf region. While the armed forces have intercepted almost all of the projectiles, the conflict undermines the stability premium that has been a critical part of the Gulf’s appeal for global investors and financiers.

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Another leading businessman said the continued instability is pressuring various sectors in Dubai and disrupting supply chains for a range of businesses. If the war stretches beyond a month, some companies will likely face difficult decisions about production and services, he said, declining to be identified discussing sensitive information.

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“Most of the Gulf States always knew that President Trump is going to be himself and not necessarily listen to outside influence,” said Ryan Bohl, a senior analyst focused on the Middle East and North Africa at the risk intelligence consultancy Rane Network. “But I think they are taken aback by how willing he is to take risks that impact them.”

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The more than 500-word post in Arabic directed at the US president by Al Habtoor, whose portfolio ranges from a polo resort to hotels branded by Hilton and Waldorf Astoria, contrasts with the measured approach taken so far by Emirati officials. Still, it reflects unease among parts of the business community about the potential impact.

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Economic Impact

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Travel and tourism, key pillars of the economy, have been badly hit. Thousands of passengers have been stranded across the Gulf, forcing many onto circuitous, expensive routes to reach functioning airports in Saudi Arabia and Oman. There are tentative efforts to restore service: The UAE is establishing safe air corridors to allow as many as 48 flights an hour.

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Dubai’s benchmark stock index, meanwhile, is heading for its worst week since May 2022.

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Still, in Dubai and Abu Dhabi, shops and restaurants are open and delivery services are running. Offices are offering work-from-home options, and taxis and public transport are operating, though roads are far less crowded than usual.

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Iran has targeted critical energy infrastructure across the Gulf, and traffic through the Strait of Hormuz — a maritime chokepoint vital for energy flows and container shipping — has ground to a near-complete halt, sending crude oil prices surging.