US-Iran conflict has disrupted Dubai's economy, triggering layoffs and salary cuts across key sectors employing migrants.
Indian and other migrant workers face job losses, shrinking incomes and limited employment opportunities amid slowdown.
Despite government assurances, renewed hostilities have prolonged uncertainty, leaving migrant workers struggling to rebuild livelihoods.
The West Asia crisis involving US, Israel and Iran has spilled deeper into the Gulf, triggering an employment crisis for migrant workers in Dubai. Recent strikes involving Iranian drones and missiles have targeted the United Arab Emirates, disrupting economic activity and affecting key sectors such as aviation and tourism.
The slowdown has affected businesses that depend on international visitors, leading to widespread job losses and salary cuts across the emirate, as The New York Times reported.
Vanishing Employment Opportunities
Joy Vivanda, a Filipina domestic worker, lost her job in March 2026 after her employers fled Dubai and did not return. She has searched for work for four months to support her four children. She starts each day walking through Dubai in the heat, checking notice boards and asking strangers if they need help at home. Other migrant workers in several neighbourhoods report similar days, going door to door with resumes.
Indian accountant Mujeeb Rahman lost his job when the catering company he worked for went out of business. "There is simply no business," Rahman said. "The company does not have enough cash flow to pay employees and suppliers." He said many companies have stopped hiring, reported NYT.
A ManpowerGroup survey of 546 UAE employers highlights the bleak market. One in four of these companies plans to cut jobs during the third quarter of 2026, while nearly a third have no hiring plans at all.
Pay Cuts, Dried Contracts
Workers who kept their jobs face reduced incomes and stagnant operations. Egyptian saleswoman Zekra Elsa moved from a fixed salary to a commission-based structure due to a drop in tourist numbers. Her daily sales now often fall under $150.
Active work has dried up for tradesmen on maintenance contracts. "I go to work every day, but there is no work," Yanick Obi, a welder from Cameroon, said.
Venkat, an Indian hotel housekeeper, returned home in April after losing his job; his Dubai income had covered his children’s school fees. "I am doing whatever I can to manage," Venkat said. "If I cannot come back to Dubai, my children’s future is at stake."
Optimism Vs Reality
The UAE government has rolled out support packages worth over $680mn to assist businesses. Economy and Tourism Minister Abdulla Bin Touq al-Marri called the impact a temporary "glitch" in an April interview. He praised the country's "agility" and "resilience".
Dubai Investments CEO Khalid Jassim Mohamed bin Kalban expects a quick recovery. He said there are no signs of people or businesses leaving the country.
A brief ceasefire had initially raised hopes of economic stabilisation. Renewed strikes between the US and Iran have since prolonged the geopolitical and economic uncertainty. For workers like Vivanda, hope is what’s keeping them in Dubai as they wait for things to improve.
