Dubai’s economic chief wants to reassure investors that the emirate is still a safe haven for capital, citing the opening of a “green corridor” with Oman, as the end of a fragile two-week US-Iran ceasefire looms.
Iran had retaliated with drone and missile attacks on Gulf neighbors after the US and Israel launched airstrikes on the isolated regime. Dubai has suffered some damage, but “it’s very, very limited relative to what’s been hurled at us,” Hadi Badri, CEO of Dubai Economic Development Corporation, told Nikkei Asia in a recent interview. He added that the challenge was largely a psychological one and not a physical threat.
“Our commitment to attract and engage with global investors is unchanged, unconditional,” said Badri whose organization is an arm of the Dubai Department of Economy and Tourism. “We continue to push the agenda around diversification and being a truly global city for global investors.”
The emirate has accelerated a plan to create a “green corridor” with Oman to bypass the Strait of Hormuz that Iran has effectively closed. The corridor, opened on March 14, is essentially a streamlined customs process that allows goods to be transported between Dubai and Oman via air and road.
It is “a direct result of the current environment,” Badri said. “Maybe we wouldn’t have done it otherwise.”
In addition, Dubai announced on April 1 an economic package of AED 1 billion (USD 272 million) to support businesses and families. Under the package, companies may defer payment of government fees for three months and hotels may do so for sales fees, giving businesses some breathing space during a time of stress.
Badri’s office has also intensified engagement with businesses across Dubai, including conversations every 48 hours with ten “champions” in the logistics sector to address supply chain disruptions.
“We are engaging two or three times more than in a normal scenario,” said Badri, a former investor, adding that Dubai’s priority was to provide predictability, reliability, and transparency of information.
After strong growth in 2025, Dubai’s economy expanded 4.4% on the year in the first quarter of 2026. Dubai, part of the UAE, was ranked by fDi Markets as the world’s top destination for greenfield foreign direct investment projects.
A growing number of Asian corporates, family offices and investors have turned to Dubai in recent years as a platform for regional expansion. Asia accounted for 46.9% of multinationals attracted to the emirate in 2025, according to the Dubai International Chamber.
“From our discussions with investors globally, including in Asia, there is a clear signal of long-term commitment,” Badri said. “They are not suggesting any retreat from planned investments or a failure to follow through.”
Badri acknowledged the possibility of “some marginal adjustments” in the near term, but said he remained confident “the underlying ecosystem is going to remain.”
Economic indicators are mixed, though. Real estate transactions rose 6% in January-March compared with the previous three months, according to data from the Dubai Land Department.
But business sentiment has softened. The S&P Global purchasing managers’ index for Dubai fell to 53.2 in March from 54.6 in February, indicating the weakest expansion in non-oil private-sector activity in nine months. Companies also reported the lowest level of confidence since late 2020.
Dubai’s leadership has long positioned the emirate as a partner to international business and is active in diversifying the economy, not least through its ambitious ten-year Dubai Economic Agenda D33 plan launched after the COVID pandemic.
Badri is resolute about those ambitions, including turning Dubai into a top four global financial hub by 2033. The current Middle East crisis could accelerate reforms, he said.
“We are turning the here-and-now challenge into an opportunity, as we did during [Covid-19],” he said.
Other financial centers are seeking to capitalize on the uncertainty in the Middle East. Hong Kong financial secretary Paul Chan predicted the conflict could drive capital inflows back to Asia, while bankers in the region report interest from clients considering relocating assets.
Badri dismissed such speculations. “We’re not seeing a substitution dynamic,” he said. “It’s not really an either-or choice.”
He argued that Dubai complements Asian financial hubs such as Hong Kong and Singapore.
“We’re going to be looking more at a model which is a ‘twin city’ kind of approach,” he said. “If you’re a family office or a high-net-worth individual investor, you’ll have an office in Singapore and an office in Dubai.”
Dubai’s role is to serve as a “super-connector,” he said, linking capital to investment opportunities across the Middle East, Africa, and beyond.
“The opportunity in the next chapter is really about deepening collaboration between Asia and Dubai and delivering even more value from Dubai for Asian investors and businesses,” Badri said. “We have a track record of resilience, and we come back stronger and more diversified each and every time we have some challenge. And so this episode is not going to be any different.”
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.