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UAE Official Says Iran War Is Delaying Some Investment Decisions

Mohammad Abdulrahman Alhawi told The National that investors the ministry spoke with had not canceled their 2026 plans, though some were reducing planned amounts.

Updated 2 min read
Container cranes and freight stacks line the harbor at Fujairah, United Arab Emirates. (AI-generated image / EconoTimes)
Container cranes and freight stacks line the harbor at Fujairah, United Arab Emirates. (AI-generated image / EconoTimes)

UAE Ministry of Investment Undersecretary Mohammad Abdulrahman Alhawi told The National some investors are delaying decisions or reducing 2026 commitments amid the Iran war, but said none the ministry had spoken with had canceled plans.

The ministry reported $48.3 billion in foreign direct investment (FDI) inflows in 2025, up 6% from 2024. It was the UAE’s fourth consecutive annual record. Citing UN Trade and Development (UNCTAD) data, the ministry ranked the country ninth worldwide for inbound FDI that year.

Alhawi’s account in an Oct. 20 interview covered investors the ministry had spoken with, rather than every planned investment in the UAE. He linked their hesitation to uncertainty over how the conflict would be resolved. He did not give a value for the commitments being delayed or reduced.

Alhawi said the UAE remained on course for its 2031 investment goals. Under the National Investment Strategy 2031, the government aims to raise annual FDI inflows to $65 billion and FDI stock to $600 billion. The ministry put FDI stock at $318.9 billion at the end of 2025. Stock and annual inflows are separate measures: one records the investment held over time, while the other records investment received during a year.

The delays Alhawi described concern decisions about future commitments, while the ministry’s 2025 figures measure investment already received. His account does not establish how much money will enter the UAE in 2026.

Alhawi said the government was prioritizing East Coast ports, rail connections and oil and gas pipelines to strengthen the country’s logistics routes. The ministry was also discussing joint ventures with foreign investors, he said.

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