A full-scale economic war is now unfolding between the UAE and Iran, marking one of the most dramatic geopolitical shifts in the Gulf in decades.
For years, the UAE — especially Dubai — served as Iran’s economic lifeline, helping Tehran bypass sanctions through banking networks, trade hubs, shell companies, gold markets, and re-export systems. In 2026, that relationship appears to have collapsed completely.
According to regional reports, the UAE is now freezing billions of dollars in Iranian-linked assets and targeting financial networks connected to the IRGC. Emirati authorities are reportedly shutting down money exchange operations, shell companies, and bank accounts suspected of helping Iran evade sanctions.
The pressure is extending beyond finance. Reports also indicate residency visas for Iranian nationals are being revoked, including some “golden visas,” while Iranian-linked institutions such as schools and hospitals face growing restrictions.