A view of a building in the streets of Dubai, whose façade was damaged by debris from an intercepted missile, according to the authorities.
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Despite the conflict in the region and its impact on investments, Swiss entrepreneurs based in Dubai are determined not to leave the Emirati city that has become their home. They also reject criticism regarding the tax benefits they enjoy.
Dubai is a city of glitz and tax breaks for some and a land of endless professional opportunities and multicultural living for others. Whatever the reason, many Swiss citizens call it home; they number some 3,800 across the United Arab Emirates (UAE), according to the latest figuresExternal link from the Federal Statistical Office.
The war launched in late February by the United States and Israel against Iran has embroiled other countries of the Gulf region. Suddenly, drones and missiles began flying over the skyscrapers of Dubai, the country’s second-largest economic hub after the capital, Abu Dhabi.
For Swiss entrepreneurs and investors operating in the Emirati market, the conflict is clearly having a negative impact.
Drop in investments
“There is still demand from Switzerland for advice on setting up businesses in Dubai, but it has dwindled,” says Urs Stirnimann, a partner in a law firm that helps foreign entrepreneurs get a foothold in Dubai. “Some foreign companies are also considering whether or not to relocate.” Originally from canton Graubünden, 72-year-old Stirnimann has been living in the country for over 20 years.
Stephan Bedoe and his wife own an investment and consultancy firm specialising in real estate for wealthy individuals. The 45-year-old Swiss takes a nuanced view of the war’s impact.
“In the immediate term, the conflict is having a big effect on our business,” he says. “Investors have put things on hold while they wait to see what happens.” But, the Zurich-born entrepreneur adds, there is still interest. “They also see it as an opportunity to buy at lower prices.”
Too early to consider leaving
Real estate is one of the sectors most directly affected by the conflict in the region. During the first 12 days of March, the volume of property transactions in the Emirates fell by 37% compared to 2025, and by 49% compared to the previous month, according to Goldman Sachs analysts quoted by Reuters.
Other sectors that are badly hit include hospitality, events and logistics, according to the Swiss State Secretariat for Economic Affairs (SECO).
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However, all the Swiss entrepreneurs contacted by Swissinfo agree that it is still too early to assess the medium-term consequences of the conflict. For Nico Tschanz, it would be counterproductive to consider leaving Dubai, as trust is a foundation of his business. The 36-year-old Bern native, who has been living in Dubai since 2021, set up his wealth management consultancy there a year and a half ago.
“To date, we have no specific information regarding Swiss companies that are considering ceasing their activities in the Gulf countries because of the ongoing war,” confirms Fabian Maienfisch, spokesperson for SECO.
Tschanz, who is also the regional delegate to the Council of the Organisation of the Swiss Abroad, has no plans to move back to Switzerland. The same goes for Stirnimann, who worked for the International Committee of the Red Cross in crisis-stricken countries for several years and therefore knows what it means to live in a conflict zone.
Bedoe, too, has no intention of leaving a city where he and his family now feel at home. “We made a deliberate decision to come to Dubai. It has become our home. We love the life here, surrounded by all these nationalities living side by side in harmony,” he says. .
Two kinds of foreign resident
The Iranian strikes prompted the cancellation of numerous flights, and thousands of passengers were left stranded at one of the world’s largest aviation hubs. Many expatriates called on their governments to come to their rescue and repatriate them. The sudden surge of patriotism among some tax exiles irked people in several European countries.
Fabio Belloni, who is from canton Ticino, owns a consultancy firm that assists businesses looking to set up in the UAE. According to him, there are two kinds of expat residents in Dubai. There are the influencers, bloggers and people working in volatile finance sectors (for example, cryptocurrencies). “They were the first to go; they were mainly tax exiles,” says the 54-year-old. Then there are the entrepreneurs and their families, who lead ordinary lives much as they would in Switzerland, says Belloni. He and his family do not intend to leave Dubai either.
“Most of the people I know here did not didn’t come for tax reasons. That’s just a nice side benefit,” says Tschanz. As for Bedoe, he says he has not come across much criticism in this respect. He believes, though, that when missiles and drones are flying overhead, it doesn’t matter whether you came for tax optimisation or other reasons. “Above all, these are human beings in need of help,” he says.
While expats enjoy very favourable tax conditions in Dubai, they risk a lot by moving back to their home countries. There, they would once again become tax residents and could be taxed retroactively on the income earned in the Emirates.
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Meanwhile, in an effort to bring back wealthy foreigners who have fled the country, the Gulf state’s government seems inclined to be accommodating on tax rules. Thus, according to the Financial TimesExternal link, such people should be able to retain, whatever happens, the tax status that allows them to pay no income tax, even if they spend time outside the country.
Resilient market
Despite the uncertain outlook, Belloni is not particularly concerned about Dubai’s economy. “Dubai has already weathered severe crises, for example in 2008 with the collapse of the subprime mortgage market and during the Covid-19 pandemic.”
This view is shared by SECO spokesperson Maienfisch, who notes that the region has demonstrated resilience and renewed growth in the face of past economic shocks. “It is still too early to determine the long-term effects of the current conflict on the countries of the Gulf Cooperation Council,” he says. This regional organisation is made up of six countries: Saudi Arabia, Oman, Kuwait, Bahrain, the UAE and Qatar.
“Around 95% of the Emirate of Dubai’s GDP is not dependent on oil,” Tschanz says, making it more resilient to such crises. Its economy is indeed more diversified than that of many neighbouring oil-dependent states, with strong growth in the tourism, finance and logistics sectors.
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Text edited by Samuel Jaberg. Adapted from French by Julia Bassam/ac.