The UAE's Exposure to Regional Conflict
In a feature for Atlas Broadcasting, ABI staff member Philipp Wagner analyses how the regional war between the United States and Iran exposed the UAE’s security and energy vulnerabilities.
As a close US ally, the UAE became a target of Iranian drone and missile strikes, while its diplomatic outreach to Iran signalled a push for de-escalation. A central concern is the Iranian drone attack near Abu Dhabi’s Barakah nuclear power plant, which provides up to a quarter of the UAE’s electricity. While the UAE relies on alternative sources of electricity generation, including expanding solar and wind capacity, Wagner stresses that the “symbolic dimension of the May 2026 drone attack should not be underestimated” and that the strike shows “how nuclear facilities are regularly weaponised in military conflict”.
Wagner also points to the economic fallout from the partial closure of the Strait of Hormuz. Shipping insurance costs spiked and UAE oil and gas exports were cut back. While exports have since recovered, he notes that “investors have partially regained confidence in sectors such as the UAE’s real estate and energy markets following the ceasefire, though it remains fragile”.
Read the article on the Atlas Broadcasting website.