Dubais Economic Endurance Is Being Tested in War With Iran

Dubai was billed as the ultimate globalized city — a Switzerland on the Persian Gulf, an authoritarian monarchy offering refuge from taxes and the conflicts that have long unsettled its neighbors.Swarms of Iranian drones and missiles shattered that illusion on Feb.28.Flaming debris scarred the facades of five-star hotels along Dubai’s skyline, including the sail-shaped Burj Al Arab.

Three months later, it remained closed.Nearby, the Jumeirah Al Qasr kept its towering floral arrangements fresh and its artificial waterways flowing, but on a recent weeknight, its great entry hall stood empty.The arrival of danger — and the disruption to air travel and seaborne trade that followed — struck at the foundations of Dubai’s economy.

Other Arab kingdoms still depend on oil, but Dubai moved beyond that model long ago.Here, stability itself was supposed to be the product.The war has become a stress test of Dubai’s model of durability.

Jim Krane, a research fellow at Rice University and author of “City of Gold: Dubai and the Dream of Capitalism,” said the city prospered by serving as a crossroads of global talent and business, attracting a population comfortable moving across borders.“It’s also the big disadvantage when things go wrong,” Mr.Krane said.

“Capital can flee, and the people can, too.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe....