High-net-worth individuals are increasingly shifting their assets from Dubai to Singapore and Switzerland due to fears about the Iran war’s impact on the emirate’s reputation.
As of early Tuesday, reports indicated that Dubai’s stock market initially lost $120 billion in value amid these tensions. Hotel occupancy rates plummeted to 20 percent, down from the typical 70-80 percent.
In March, the total value of residential property transactions in Dubai fell nearly 20 percent month-on-month, totaling about $10.1 billion. This downturn reflects broader concerns about the stability of the region.
Despite these challenges, Dubai recorded a GDP growth of around 4.7 percent in the first nine months of 2025. The city has attracted a record 9,800 millionaires last year, bringing an estimated $63 billion in new wealth.
Diversification strategies:
- Many high-net-worth individuals are not completely exiting Dubai but are diversifying their assets.
- Ryan Lin noted that “Switzerland tends to appeal to European and global clients, while Singapore is more likely to benefit from Asian origin wealth.”
- Till Christian Budelmann stated that for those seeking to divest some assets, it’s often a choice between growth and preservation.
The UAE government aims to turn Dubai International Airport into the world’s largest aviation hub by 2033. However, ongoing geopolitical tensions could influence investor confidence.
If a ceasefire holds and confidence returns quickly, observers believe that Dubai could rebound rapidly. Yet, concerns remain regarding how long these geopolitical issues will persist.
