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UAE’s Détente with Iran: A Pragmatic Shift

Financial Times Companies •
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Five months after Iranian drones flooded Dubai’s financial district, high‑rise offices have re‑filled and traditional dhows again ferry goods to Iran. The UAE is easing tensions by reactivating diplomatic and economic channels while doubling military ties with Israel and the US.

Since the US‑Iran ceasefire unraveled, the UAE has shifted from a hawkish stance—almost 3,000 missile and drone assaults—to a pragmatic détente, allowing some 20,000 UAE‑resident Iranians to return and resuming Iranian flights.

Sheikh Mohamed bin Zayed al-Nahyan has tasked Sheikh Mansour, Sheikh Abdullah, and Sheikh Tahnoon to manage the fragile truce, while senior academics note distrust remains. The UAE remains wary of direct Iranian attacks but sees economic benefits in trade and investment.

Despite this easing, the UAE is deepening defence cooperation with Israel, which has supplied Iron Embedded drones and advanced laser systems during the war, and it continues to view Iran as a strategic threat that must be managed carefully.