Dubai finance hub rattled as Gulf banks shut branches over Iran threat
Banks across the Gulf shut branches and moved staff to remote work after drone debris struck near Dubai’s DIFC and Iran warned regional banks could become targets
Dubai’s role as a regional financial hub has been shaken after major global banks and financial institutions across the Gulf began temporarily closing branches and evacuating staff, following the fall of Iranian drone debris near the Dubai International Financial Centre (DIFC) and warnings from Tehran that banks in the region could become targets.
Domestic and international banks across the Gulf have started temporarily shutting branches and instructing employees to work from home after debris from an Iranian drone struck a building near DIFC, one of Dubai’s key financial districts in the United Arab Emirates. The incident has heightened fears of attacks on banks and financial centres across the region.
Earlier, Iranian spokesman Ebrahim Zolfaghari warned people on Wednesday to stay at least one mile away from banks in the Gulf, saying such institutions could become targets. The warning followed an attack on a building linked to Iran’s Bank Sepah in Tehran, after which Iran threatened economic and banking interests tied to the United States and Israel in the region.
Several Wall Street banks told staff to work from home. Citigroup evacuated employees from its Dubai office from Wednesday and said most of its UAE staff were already working remotely before shifting to a fully remote model for all staff in the country. Citi also temporarily closed most of its branches and financial centres in the UAE through March 14, with one Dubai branch remaining open.
Bloomberg reported that Goldman Sachs required employees to seek permission before entering office buildings in the Middle East, while other banks including JPMorgan, UBS, Deutsche Bank and BNP Paribas also asked staff to work from home.
Beyond the banking sector, global professional services firms such as PwC and Deloitte were also reported to have temporarily closed offices in Dubai, while Bloomberg allowed Gulf-based staff to leave the region temporarily if they wished.
In Bahrain, Standard Chartered temporarily closed its branch in the capital, Manama, until further notice, while other branches remained open with reduced hours, according to industry reporting. HSBC also temporarily shut all three of its branches in Qatar, citing safety concerns.
The banking precautions followed reports of damage to a residential building near DIFC in Dubai. Reporting from the Financial Times said debris from intercepted drones struck buildings in and around the district, causing minor damage and intensifying concern over economic stability and security.
The broader concern is that the Gulf conflict is no longer confined to military or energy targets. Tehran’s warning suggested that financial centres and banks linked to the US and Israel could be drawn further into the confrontation, raising fears of prolonged disruption to one of the region’s most important business and finance hubs.
