UAE Banks Stay Strong During Regional War: No Covid-Style Bailout Needed, Says Banking Chief

However, some sectors have begun to face pressure. Hospitality businesses dependent on tourism, restaurants and companies linked to shipping and logistics were among those identified as vulnerable.

Al Ghurair and Jamal Saleh, the director general of UBF, shared estimates that inflation could rise to around 3 per cent by the end of the year, due to higher fuel, freight and import costs.

Products moved by air had become particularly expensive, they said, pointing to rising food import prices as an example.

At the same time, the crisis has renewed discussions around food security and local production.

Officials said policymakers were becoming more open to changing regulations to support domestic agriculture and manufacturing.

“Everything that is tabooed in the past, as long as it serves local production, self-sufficiency, we will break those rules,” said Al Ghurair.

Executives also addressed concerns around Dubai’s property market after years of rapid growth. While they said mortgage defaults remained below 1 per cent, they acknowledged that buyers had slowed purchases amid expectations prices could soften.

“People have slowed down buying their properties,” said Al Ghurair.

“People have slowed down because they think, okay, maybe I can wait. Price will come down,” he added.

Bankers said the possibility of disruption to the Strait of Hormuz had become a more serious planning scenario for businesses and regulators.

He said the UAE was increasingly looking at alternatives through Fujairah and the Arabian Sea, as well as future rail and logistics links.

“We will find solution,” said Al Ghurair.

Despite concerns over regional instability, Al Ghurair said he remains optimistic about the UAE’s future, arguing that the country has repeatedly emerged stronger from past crises. “They all bounce back better,” he said, adding that difficult periods often force governments and businesses to rethink regulations, logistics systems and infrastructure in ways that ultimately improve competitiveness and attract more investment.

Al Ghurair said many residents in the UAE “take it for granted” how secure daily life feels in the country. “We want to make UAE a home for everybody, for talented people to live and work in harmony,” he said, while urging residents and businesses not to leave during uncertain times.

“Don’t pack up and go, please. You’ll regret it if you pack up and go,” he said.