Last Wednesday, we filled a room at the National Liberal Club to ask what the widening Gulf conflict actually changes about the UAE and Britain’s relationship with it. David Waddell of BBC News chaired, with Michael Stephens of RUSI, James Swanston of Barclays and Sir Oliver Dowden MP. The full recording is here: https://open.substack.com/live-stream/353198
What to look out for today: any follow-up to Sheikh Khaled’s meeting with Iran’s president; the timetable for reopening Saudi Arabia’s East-West pipeline; and Brent’s response to the closure of the pipeline that lets Saudi crude bypass the Strait of Hormuz.
Good morning. Drones launched from Iraq forced Saudi Arabia to shut its main westward oil pipeline. In New Delhi, Abu Dhabi Crown Prince Sheikh Khaled met Iranian President Masoud Pezeshkian.
Sheikh Khaled meets Iran’s president
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Masoud Pezeshkian had not met face to face since the Iran war began. They met on Saturday at the Bharat Mandapam convention centre in New Delhi, on the sidelines of the BRICS summit, and both called for de-escalation.
Sheikh Khaled led the UAE delegation to the two-day summit.
Anwar Gargash, diplomatic adviser to the UAE President, said the meeting reflected the UAE’s policy of combining “deterrence and diplomacy”.
Saudi Arabia’s Hormuz bypass goes offline
Drones launched from Iraq struck the East-West oil pipeline in the Riyadh and Medina regions, starting fires and causing injuries. Saudi Arabia shut the line.
The 1,200-kilometre pipeline carries crude from eastern Saudi Arabia to the Red Sea port of Yanbu, allowing exports to avoid the Strait of Hormuz. Through the conflict, it has moved between four million and five million barrels a day.
That leaves the Habshan-Fujairah line, run by the Abu Dhabi National Oil Company (ADNOC), carrying more of the region’s Hormuz-free exports — about 1.8 million barrels a day.
The UAE condemned the strikes as a violation of Saudi sovereignty and pledged full support for the kingdom’s defence of its territory. Baghdad confirmed the drones came from Iraqi territory, opened an investigation and dismissed the commander in charge of military operations in Maysan province.
Riyadh held off retaliation at the Iraqi prime minister’s request but reserved the right to defend its territory and infrastructure.
War tests the UAE boom
Higher fuel and import costs are slowing the post-pandemic boom, and the conflict has disrupted aviation, tourism, property and supply chains. The UAE Central Bank expects growth to fall from 6.2% in 2025 to 1.7% this year.
Dubai International Airport’s passenger traffic fell 31.3% in the first half, and Dubai hotel occupancy dropped to about 64% in August from 76% a year earlier. Petrol prices have risen by more than 60% since the war began.
People and capital are still arriving. Dubai has added about 200,000 residents this year, the Dubai International Financial Centre has passed 10,000 active companies, and Abu Dhabi Global Market added 4,700 workers in the first half.
Parents are still enrolling. GEMS Education expects enrolment to reach 147,000 this year, and Taaleem’s pupil numbers have risen about 7% to 19,500. Seven new private schools have opened in Dubai, adding 17,000 places.
For 2027, the Central Bank forecasts growth of 9.8%, built chiefly on a projected 25.7% expansion in the hydrocarbon economy. It expects non-hydrocarbon growth of 4.5%. Economists surveyed by Bloomberg put overall growth closer to 7%.
UAE and Germany agree on an investment council
President Sheikh Mohamed bin Zayed and German Chancellor Friedrich Merz launched a Strategic Dialogue during last week’s state visit to Berlin and signed a declaration of intent to establish a joint investment council.
The UAE plans to invest €40 billion ($46 billion) in Germany across artificial intelligence, digital infrastructure, energy and industry, including about one gigawatt of new data-centre capacity.
The 29 agreements also cover defence, energy and easier access to German airports for UAE citizens. Germany will allow one UAE national carrier, which the reporting does not name, to fly to a fifth German city.
Oil keeps its conflict premium
Brent settled at $104.61 a barrel on Friday, down $3.02, or 2.81%, during the session. It remained 17.57% higher over the preceding month and 56.16% higher than a year earlier.
Traders open the week weighing the loss of a pipeline carrying four to five million barrels a day, alongside continued disruption around Hormuz.
Dubai’s 24-carat gold price slipped to Dh524 a gram on Sunday. The 22-carat rate stood at Dh485.25.
More than 170 UAE flights delayed
FlightAware listed 122 delays at Dubai International Airport and 51 at Zayed International Airport by Sunday afternoon. Flydubai also cancelled two services between Dubai and Bahrain.
Some passengers travelling from Indian cities faced delays of up to 12 hours. Airlines have rerouted around the conflict zone, and the knock-on delays have spread across the Gulf.
Passengers flying today should check directly with their airline before leaving for the airport.
$10 million for Haiti
Political instability and gang violence have displaced more than one million Haitians. The UAE has allocated $10 million for humanitarian work there.
The Emirates Red Crescent will provide food, shelter, medicines, medical equipment, water and sanitation support, starting with displaced families.
Nepal team rescues ten more survivors
The UAE Search and Rescue Team has rescued another ten survivors reported missing after the Nepal floods, taking the total to 18 since the mission began.
Teams are searching around Rasuwa and the Trishuli River using drones, aerial surveys and three-dimensional mapping. A fifth UAE aircraft delivered 34 tonnes of aid, including jet skis, rescue boats, solar panels and specialist search-and-rescue equipment.
Sheikh Hamdan approves first leadership medal
Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed, has approved the first recipient of the Mohammed bin Rashid Leadership Medal, a Dubai government official of director-general rank. He will name the recipient at the Mohammed bin Rashid Leadership Forum on 23 September.
The annual medal recognises a director-general who develops and empowers the next tier of Dubai government leaders.
Watch tomorrow
UAE-Iran diplomacy: whether Monday produces plans for further talks after the New Delhi meeting.
Saudi pipeline: any reopening timetable, damage assessment or evidence identifying the group behind the attack.
Oil: whether Brent holds above $100 after markets absorb the pipeline closure.
Algeria: any further restrictions after Algiers severed relations with the UAE on Thursday, expelled the Emirati ambassador and closed its airspace to UAE-registered aircraft. Commercial flights into Algiers are exempt until the end of 2026.
The UAE economy: early September figures for tourism, airport traffic and property sales.
Berlin: named projects, locations and delivery dates under the €40 billion programme.
— Steve
Steve Moore
Emirates Wire · launched 9 September 2026 at the National Liberal Club, London
emirateswire.co.uk · steve@emirateswire.co.uk
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