Many Dubai expats fled as the war in the Middle East escalated. Those that stayed say life is 'functioning but tense'

Tension hangs over Dubai. Social occasions and day-to-day activities are being interrupted by evacuation alerts and flashes in the sky as air defenses intercept drones, but much of life continues as normal, residents told CNBC.

Iran has launched drones and missiles towards neighbouring countries in the Middle East following U.S.-Israeli strikes against it that began on Feb. 28. Tehran has targeted U.S. military bases in the region, as well as oil and gas production facilities and civilian infrastructure. 

The United Arab Emirates, along with many other countries, has mobilised air defenses as attacks have continued into the second week of the conflict and rushed to reassure citizens and international investors, whom the country has been courting for years.

But Dubai Police has warned citizens that "photographing or sharing security or critical sites, or reposting unreliable information may result in legal action and compromise national security and stability."

A total of 21 people have been charged in connection with social media posts about Iranian strikes, according to Detained In Dubai, which works to support people caught out by stringent local laws.

While many expatriates have scrambled to leave the region after the war broke out, others have elected to stay put, and some shared their experiences with CNBC.

Since the war began, Dubai's five-star Fairmont The Palm Hotel has been struck and debris from a downed Iranian drone caused a fire at the Burj Al Arab hotel. Dubai's airport was damaged by a missile strike, and on Tuesday, the U.S. Consulate in Dubai was hit by a suspected drone strike that caused a fire nearby.

Attacks on AWS data centers in the country caused outages in banking, payments, enterprise and consumer services last week.

"Living in Dubai right now is a strange mix of normality and quiet tension," Glen Pawson, managing partner of marketing agency M3, who moved to the city in 2025, told CNBC.

"It's surprisingly easy to get absorbed in the rhythm of day-to-day life and almost forget the wider situation," he added.

"Then something reminds you. For us, it's usually the phone alerts telling people to take shelter."

Pawson said that, on a few occasions, he watched air defense countermeasures launch into the sky. "Seeing the flashes in the distance and, in some cases, the debris burning as it falls back to earth, is surreal."

Despite that, he said, businesses are still operating, people are still socialising, and the general atmosphere is one of "cautious awareness" as opposed to "panic."

"The reality on the ground is that life feels both completely normal and completely abnormal at the same time," Pawson told CNBC. "You can go from a routine day to watching defence systems light up the sky in the space of a few minutes."

Harley McGaughran has lived in Dubai for two years, having previously been in London, and owns a luxury personal shopping business. He said he's "never felt safer."

"Footfall in our physical shop has slowed, but online enquiries and personal messages have been steady," he told CNBC. Dubai is quieter, restaurants and beach clubs are less busy, but "life goes on if you operate a business and call the UAE home," McGaughran added.

He added that, on March 6, "We received a government alert to evacuate while at a restaurant, which was handled efficiently and without panic, the venue was still reasonably busy."

The situation in Dubai is "functioning but tense", said Nick Rowles-Davies, a lawyer who moved to Dubai in 2022, having previously lived in London.

There is "visible vigilance in some areas, particularly at night when interceptions have been audible," he told CNBC. "It is not panic, but there is a clear recognition that this is no longer distant geopolitics."

Dubai's International Financial Center remains quiet, after two consecutive strikes from Iran this week targeted the area. Dubai's media office confirmed the incidents, but said no injuries occurred.

Regional hubs for Goldman Sachs, Citi and Standard Chartered ordered their staff to work from home.

The financial center's iconic ICD Brookfield building, a skyscraper designed by Foster + Partners and home to BlackRock, Bank of America, JPMorgan, EY and BNP Paribas, is usually bustling with bankers but is currently empty.