Indian workers are among thousands of expats in Dubai facing job losses, pay cuts and fewer employment opportunities as the economic impact of the US-Israel war on Iran continues to affect the United Arab Emirates (UAE), according to The New York Times (NYT).
Businesses across tourism, aviation, hospitality, retail and catering have been hit by the slowdown. As demand fell, many companies reportedly cut jobs, reduced salaries and stopped hiring.
Indian accountant Mujeeb Rahman was among those who lost their jobs after the catering company where he worked suffered a sharp fall in business. He told NYT that finding another job has become difficult because many companies have frozen recruitment.
Another Indian worker, Venkat, returned to India after losing his job as a housekeeper at a five-star hotel in Dubai. His earnings in the UAE helped pay for his children’s education, showing how the downturn is affecting families that depend on money sent home from abroad.
The slowdown is reflected in the latest hiring outlook. A ManpowerGroup survey of 546 employers in the UAE found that one in four expects to cut jobs during the third quarter of 2026, while nearly one-third have no plans to recruit new employees.
Workers from other countries have also been affected. Filipina domestic worker Joy Vivanda has spent months searching for a new job after the family she worked for left Dubai during the conflict. Egyptian saleswoman Zekra Elsa also saw her income fall after her employer replaced her fixed salary with commission as tourist numbers declined.
The UAE government has announced support measures worth more than 680 million US dollars to help businesses through the slowdown.
Economy and Tourism Minister Abdulla Bin Touq Al Marri has described the impact of the war as a temporary “glitch”, saying the country’s economy is built on “agility” and “resilience”.
Dubai Investments Chief Executive Officer Khalid Jassim Mohamed bin Kalban also said he expects the slowdown to be temporary and does not see businesses or residents leaving Dubai in large numbers.
The US-Israel war on Iran began on February 28, when Washington and Tel Aviv launched coordinated strikes on Iran’s nuclear programme, military infrastructure and senior leadership.
Iran responded with missile and drone attacks on Israel, US military bases and strategic locations across the Gulf. It also disrupted shipping through the Strait of Hormuz, affecting trade and global energy supplies.
A US-Iran interim agreement signed on June 17 briefly eased tensions, but the ceasefire later collapsed. Fighting has since intensified again, disrupting trade, tourism, aviation and business across the region, with many expatriate workers continuing to face uncertainty over their jobs and livelihoods.
