DUBAI: Rising tensions between United States and Iran are putting heavy pressure on the economy of the United Arab Emirates, with the Gulf state facing mounting risks of a financial crunch for the first time.
According to a report by The Wall Street Journal, the UAE has formally approached Washington to secure dollar support and has opened talks to cushion potential economic shocks.
The report said escalating conflict in the region has sharply curtailed trade activity. Port and logistics operations have slowed, while uncertainty has forced hundreds of international companies to shut offices or suspend operations temporarily. Analysts say such a slowdown is rare and marks an extraordinary test for the UAE economy.
In response, UAE Central Bank Governor Khaled Mohamed Balama held key meetings with U.S. officials to explore access to dollars through a currency swap line. An Emirati delegation also held detailed talks in Washington with Scott Bessent on possible financial arrangements.
Officials warn that further escalation in US-Iran tensions could deepen the economic impact and make it harder to maintain financial stability.
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While US media say the UAE has so far avoided the worst direct fallout from the conflict, the current situation has increased pressure on its financial system and trade structure, prompting authorities to seek global financial support as a precaution.
