Iran’s retaliatory strikes following the United States and Israel’s attacks have rattled Dubai’s reputation as a regional safe haven, raising concerns over the stability of the emirate’s economy and business environment.

Reports said debris from an Iranian missile strike hit Dubai’s Fairmont The Palm Hotel, with parts of the luxury property briefly engulfed in flames after the attack targeted key sectors in the country.

Analysts warned that the escalating conflict could have broader economic consequences.

“What is happening in UAE could be catastrophic, unless they pressure Trump [to] defeat Iran quickly and decisively or to fold right away,” former JPMorgan Chief Strategist Marko Kolanovic said on X, formerly Twitter.

“With 88% of expats, tourism, finance, air and shipping exposure, this can also send shockwaves globally,” he added.

The strikes reportedly triggered panic across parts of Dubai, with residents rushing to airports and engaging in panic buying at supermarkets.

Experts said the situation threatens the city’s long-standing image as a stable hub in a volatile region.

“This is Dubai’s ultimate nightmare as its very essence depended on being a safe oasis in a troubled region,” Cinzia Bianco, a scholar at the European Council on Foreign Relations, said on X.