Executive Summary
The Israel–US–Iran conflict in February 2026 has increased volatility across energy markets, trade routes, and financial systems, with disruptions in the Strait of Hormuz impacting regional activity. In the UAE, non-oil sectors such as trade, tourism, aviation, and logistics face short-term pressures, while investor sentiment remains cautious due to ongoing uncertainty. The Central Bank of the UAE’s AED 1 trillion resilience package supports financial stability, with the UAE’s strong economic fundamentals helping mitigate risks and support recovery.
