00:00The Switzerland of the Middle East. That's how Dubai, Abu Dhabi and the rest of the UAE have become known,
00:05thanks to their low-tax financial centres, economic stability and Instagramable tourist spots.
00:10But after Iran's deadly barrage of retaliatory missile and drone strikes, that safe haven status is starting to crack.
00:17Hundreds of missiles and drones have rained down on these economies, bringing to a halt Dubai Airport,
00:22the busiest travel hub in the world, and triggering an evacuation dash by CEOs, working families and stranded travellers.
00:29Despite the proximity of the UAE to Iran, the risk of war breaking out seems to have been very underpriced,
00:34at least judging by the boom in luxury real estate deals and hedge funds arriving in the UAE.
00:38Damage so far has been limited thanks to missile interceptors, but the images of five-star hotels on fire,
00:44panic buying in supermarkets and people sheltering in basements won't be forgotten easily.
00:49It's a very early day, Dubai could still bounce back if the war ends quickly,
00:53or if Iran's ability to keep these hacks going is stopped.
00:56But the nightmare scenario of a longer war is a real one.
00:59It could really squeeze Dubai's huge non-oil economy and make the UAE look less attractive overall.
01:04That would make it harder for Gulf leaders to fulfil ambitious projects like building an artificial intelligence hub with data
01:11centres.
01:11Physical infrastructure just looks very vulnerable.
01:14This is why the UAE leaders are working their diplomatic networks and pushing for de-escalation.
01:18In the meantime, those missile interceptors will be key to Dubai's ability to retain its safe haven status.
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