Dubai's bankers & hedge fund managers only slightly worried by the Israel-Iran conflict

If you're a hedge fund manager or banker in London or Singapore, is now the time to be moving to the UAE? At its closest point, Dubai is 160km from the coast of Iran. If the conflict between Iran and Israel intensifies, that might come to seem uncomfortably close for finance professionals and their families who've moved to the region for its perceived safety.

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For the moment, though, most people seem unconcerned. "The UAE is never involved in conflicts. Dubai is the crystal house that no one wants to throw stones at," says one senior Western investor who's been in the region for nearly 15 years. A portfolio manager who moved from London two years ago agrees: "While the situation could deteriorate, there is little fear on the ground at this moment that the UAE will get drawn into the conflict," he tells us.

A senior London banker in the process of moving to the region says the UAE and Qatar typically play a mediating role in regional conflicts. "Conflicts don't typically spill over into the UAE and Qatar unless they take sides, which they don't," he says. "If anything, I see the region benefitting from a higher oil price." 

This sanguine state of mind is easier to maintain at this time of year because financial services professionals in the region always tend to leave for the summer. Temperatures in Dubai reach 50°C in July and August, and in any year it's standard for bankers and portfolio managers with families to work somewhere cooler.  "A lot of professionals will take block leave and use the option to work remotely," says the portfolio manager. "They usually go to Europe or North America - wherever their family is from." 

However, one London finance professional with relatives in the region says people there are worried about mobility and flight safety and are flying out earlier than usual. "It's a concern and has the potential to become a long term issue," he tells us. Airlines have been suspending flights within the region.

If the US is drawn into the war, the situation could become more precarious. Monocle notes that the US's largest airbase in the Middle East is in Qatar, and that thousands of US troops are stationed outside Abu Dhabi. 

Some are starting to broaden their job searches. One banker planning to move to the region tells us he's also looking at jobs in London. Headhunters are still bullish, though. "The population of the UAE is completely and utterly confident about the way the country is being run, says Oscar Orellana-Hyder at Cordell Partners.  Orellana-Hyder says he's still getting "dozens" of messages a day from people who want to move to there from Europe. "If you look at all the conflicts we've had in this region going back 20 to 25 years, the UAE has come through stronger," he adds.

The Dubai-based portfolio manager also points out that UAE has more going for it than security. "Safety is certainly one of the factors that has led many Western financial professionals to base themselves in the UAE. However, there are others including favourable tax treatment, more sunshine, long-term residency options and a growing ecosystem," he says. "They all add to the appeal."

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