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UAE Pursues Dual Track of Limited Engagement With Iran and Stronger Ties to US and Israel

A bid to restart commerce through limited ties with Tehran backed by deeper US and Israeli security cooperation is under way.

Overview

  • The UAE has quietly reopened limited trade routes and direct flights to Iran and is allowing thousands of stranded Iranian residents to return, steps aimed at reviving business after recent disruption.
  • Five months after Iranian drone threats emptied parts of Dubai’s financial district, offices and banks have largely repopulated as a fragile ceasefire has reduced attacks.
  • Abu Dhabi is simultaneously expanding defence links with the United States and Israel, focusing on air defence, artificial intelligence, technology transfer and defence-industry ties to strengthen deterrence.
  • Officials say the policy is pragmatic risk management: restore economic links to protect jobs and trade while building military and logistical capacity to face any renewed escalation.
  • The government is also investing in resilient infrastructure and alternative trade routes to lower dependence on the Strait of Hormuz and to limit future supply-chain shocks.