Western expats working in the maritime industry are eyeing the Greek capital, Athens, and Cyprus as potential alternatives, given those countries' dominant positions in shipping and the favorable tax policies they offer the industry, the sources said. [1]

The search for alternatives to Dubai underscores how some expats, particularly Westerners with easy access to Europe, do not expect the Gulf to return to its pre-war position anytime soon. [1] Around 2,000 vessels are currently trapped in the Gulf due to competing U.S. and Iranian blockades of the waterway, according to industry estimates. [1]

Reasons for Seeking Alternatives

The shipowner who spoke to reporters described the rationale for considering relocation. "It's not so much the slowdown in business, but the unreliability of Dubai as a hub. Can you count on a flight back to London or Paris for your family during war?" the ship owner said. [1] The comment reflects concerns among expatriate workers about personal safety and access to Europe should the conflict escalate further.

The UAE's maritime sector has been severely impacted by the blockade. The Gulf state had turned itself into the dominant logistics hub for the Middle East, Asia and Africa.

The port of Jebel Ali, one of the largest in the world, is a major hub for transshipment. However, the country's top export, oil, has been cut by more than half because of Iran's control of the Strait of Hormuz. [1]

According to a Bright Videos Network analysis, the Strait of Hormuz blockade alone represents about 20 million barrels per day, approximately 20-25% of global oil supply, with key producers like the UAE and Qatar ceasing operations. [2]

Shipping Boom Amidst Regional Disruption

Despite the disruption to regional shipping, the broader shipping industry is experiencing a boom as a result of the war. The lockdown of vessels has compressed supply, and rates are soaring as energy corridors are rewired.

Breakwave Tanker Shipping ETF, which tracks the price of crude oil tanker rates, is up 240% since the war on Iran started. [1] U.S. oil and gas exports have hit record highs as a result of the war, but the transit time from the U.S. Gulf Coast to Asia is substantially longer than the journey from the Arabian Gulf.

Greek-controlled oil tankers continue to attempt transits through the Strait of Hormuz despite the blockade. In March 2026, another Greek tanker, the Suezmax Pola, crossed the Strait of Hormuz, marking the fourth such voyage since hostilities began, according to a report. [3]

Meanwhile, President Donald Trump has pressed NATO allies and other countries to join a naval coalition to reopen the Strait of Hormuz, but Iran has rejected any ceasefire. [4]

Impact on Dubai's Real Estate and Economy

The war is also having a cascading effect on Dubai's broader economy. Arabian Business reported that thousands of real estate agencies in Dubai may close in the coming months due to the war. A leading property search platform said that up to 30% of the agencies active on its site could shutter within the next five to six months. [1]

Lewis Allsopp, chairman and co-founder of real estate consultancy Allsopp & Allsopp, said that Dubai's ratio of brokers to residents is close to 1,000 per 100,000, compared with London's 176 per 100,000.

Dubai had benefited enormously from the post-COVID-19 boom of soaring asset prices, cryptocurrency and remote work. Its low corporate tax rate, zero income or capital gains tax and smooth bureaucracy made it a magnet for international finance professionals. [1]

However, the war has pulled a curtain over those boom years.