You'll be wrong to say bye to Dubai

Don't listen to everything you hear. Sure, real estate transactions in Dubai declined by 14% in early April as the war in West Asia weighed on buyer sentiment and triggered a sharp drop in rental demand. But hold on. The city's position as a resilient global financial hub is intact, and should help it stabilise over time. Dubai has handled crises before to emerge stronger as a magnet for capital and expat billi-millionaires. A combo of location, regulation and taxes has consolidated its position as a haven in a crisis-prone neighbourhood. The ongoing conflict has created the strongest threat to Dubai's carefully-crafted nature of a reliable place to do business. But lessons from it will be incorporated to build a stronger structural response for the haven's economic resilience.

Correction in Dubai's property market, which was facing oversupply in the run-up to the war, offers locals a buying opportunity. Expat-emigre interest should revive if the ceasefire endures and rolls over into peace, making the region more stable in a changed Gulf landscape. And Dubai itself will evolve into a stronger economic argument for the region's energy-exporting nations. Reopening the Strait of Hormuz should re-establish the UAE's role as trading hub for West Asia and, thereby, shore up Dubai's stature as a business destination. Tenancy levels are likely to be restored once clarity emerges on the scope of the conflict.

India has a special relationship with the UAE for merchandise trade with West Asia. Dubai provides a host of ancillary services for India's energy imports from the region. India also routes its trade with GCC through the UAE, with which it has an FTA. The city also hosts expatriates and Indian workers, while drawing significant interest from Indian investors in Dubai's property market. Dubai Airport, the world's busiest, serves as a transit hub for international air traffic to India. New Delhi has valid reasons to prioritise its economic engagement with the UAE. Its role is key to most of them - beyond the shopping.