IIF: Dubai could enter a 'small recession' because of the Iran war

Garbis Iradian, chief economist for Middle East and North Africa at the Institute of International Finance (IIF), says that the Iran war could cause Dubai to enter a temporary recession from lower tourism, trade, and FDI. The former IMF official adds that he does not expect a major recovery in international visitor numbers to Dubai in the second half of 2026, elaborating that it will take "several months" after a U.S.-Iran ceasefire before tourist confidence is restored.