Dubai's aspirations as a tax-free financial hub face turmoil as retaliatory Iranian strikes spark panic among expatriates and investors. The Fairmont The Palm hotel, a luxury enclave for wealthy residents, became a focal point when drones and missiles triggered evacuations, exposing vulnerabilities in the emirate's security.

Gulf-based private credit funds, including Blackstone's flagship portfolio, reported $1.7bn net outflows in Q1, signaling investor unease. Executives at major hedge funds admitted to FT that geopolitical risks, once dismissed, are now prompting contingency plans for employee and client evacuations.