The repercussions of the Iran war have been felt globally, however the United Arab Emirates has suffered a extra direct affect than most, focused by missile and drone strikes. Those assaults have additionally threatened its picture as a glamorous haven for vacationers to the Middle East.
Still, Abu Dhabi is pushing forward with main tourism initiatives. It introduced on May 14 it is going to make investments $1.7 billion in an immersive expertise middle referred to as Sphere. Operated by US-based Sphere Entertainment Co, the primary Sphere opened in Las Vegas in 2023 and has hosted live shows by U2 and Phish.
“We are doubling down on our tourism ecosystem as a whole,” Mohamed Khalifa Al Mubarak, the chairman of Abu Dhabi’s Department of Culture and Tourism (DCT), instructed NCS’s Becky Anderson on the day of the announcement.
Abu Dhabi, capital of the United Arab Emirates (UAE), has invested closely to develop its tourism trade in a bid to diversify its economic system away from oil, together with constructing sights just like the Saadiyat Island Cultural District, which is residence to a global outpost of the Louvre. A department of the Guggenheim Museum is nearing completion.
In 2025, Abu Dhabi hosted 26.6 million guests and 5.9 million resort friends, in line with its tourism company. The emirate hopes to draw 39.3 million guests per 12 months by 2030, and enhance the sector’s contribution to its gross home product to AED90 billion ($24.5 billion).
But the UAE has confronted strikes from Iran in response to the war the US and Israel launched on Tehran in late February. Drones have focused tourist infrastructure in the country, together with airports.
A drone strike final Sunday that precipitated a fireplace outdoors a nuclear facility “threatened nuclear safety in the country,” in line with the International Atomic Energy Agency. Abu Dhabi authorities mentioned there was no launch of radioactive materials, and no threat to the general public or atmosphere.
Hotel occupancy charges in Abu Dhabi through the Eid al-Fitr vacation in mid-March fell by 45% in contrast with final 12 months, in line with actual property knowledge and analytics supplier CoStar.
The war triggered widespread flight cancellations. Although the UAE absolutely lifted airspace restrictions in early May, many airways nonetheless haven’t resumed flights. Germany’s flagship provider Lufthansa, for instance, has suspended flights to Abu Dhabi till late October.
Al Mubarak instructed NCS that worldwide vacationers are beginning to return. “Regional tourism is really picking up right now,” he mentioned.
Abu Dhabi flagship airline Etihad is at the moment working at round 80% capability. About 250 flights arrived at Zayed International Airport on February 27, the day earlier than the war started, in line with monitoring web site Flightradar24. By comparability, round 200 flights a day have been arriving on the airport on the finish of this week.
Aaron Goldring, a tourism-focused senior economist at advisory agency Oxford Economics, mentioned that the notion of security is essential for vacationers. He expects the UAE to undertake vital advertising and different initiatives to enhance that notion. Tourism “is already a really important sector for them, but also for the future,” he mentioned.
“The length of the conflict will impact how long it will take to recover,” he added.
The emirate first introduced its intention to construct the Sphere in October 2024. On the May 14 announcement of funding, James L. Dolan, CEO of Sphere Entertainment, mentioned in assertion that: “Sphere Abu Dhabi will establish Yas Island as a destination in the region for immersive experiences, and we look forward to working with DCT Abu Dhabi to see this venue come to life.”
Investment within the venue, which is set to be full in 2029, is a “clear signal” of Abu Dhabi’s dedication, Al Mubarak mentioned in a press launch. “Abu Dhabi is open, ambitious, and unwavering in its direction,” he added.
Some specialists agree that the battle is unlikely to have long-term impacts on Abu Dhabi’s quest to draw vacationers.
“It’s a long game for the UAE and other Middle Eastern destinations,” Nancy Gard McGehee, professor of hospitality and tourism administration at Virginia Tech, instructed NCS. “They are a wealthy country and have a sophisticated tourism planning strategy.”
In 2024, the Abu Dhabi Tourism Strategy 2030 was launched, laying out billions of {dollars} of spending on infrastructure and different initiatives, together with advertising.
Work on different main sights seems to be persevering with. The Guggenheim within the Saadiyat Island Cultural District is “still on a path to open at the end of this year,” Al Mubarak instructed Anderson.
In May 2025, Disney introduced a new theme park in Abu Dhabi. “The strategic logic of our Abu Dhabi plans is unchanged,” Disney mentioned in an earnings report earlier this month.
“We are long-term thinkers,” Al Mubarak instructed Anderson. “Like any strategy, you’re always going to have some roadblocks.”