UAE

BEIRUT — Iran’s economy, already strained by high inflation, years of Western sanctions and a war that has sharply reduced oil revenue, is poised for more instability as the Trump administration tries to coerce other countries into ending all financial dealings with the Islamic Republic.

A decision by the United Arab Emirates to suspend trade relations with Iran last week kick-started the White House’s latest attempt to isolate Tehran into submission. Iran entered the war with its foreign commerce concentrated among a relatively small group of countries, leaving it with fewer places to turn now.

The success of the U.S. strategy largely will hinge on China, the main buyer of Iranian oil and its top trading partner. Russia, a fellow target of sweeping U.S.-led sanctions, has a military conflict and economic crisis of its own and probably can’t offer longtime ally Iran much hard financial support.

Regional partners like Turkey, Pakistan and Iraq maintain important relationships with both Iran and the U.S., giving them reason to avoid exposure to the secondary sanctions that Treasury Secretary Scott Bessent said awaited nations that did not cut economic ties with Iran.

“Those who stand with the United States will reap the rewards of our partnership,” Bessent said Monday while outlining the plan he called “Operation Economic Outcast.” “Those who tether themselves to the Iranian regime should expect to share in the isolation.”

The Emirates will be hard for Iran to replace as a conduit for foreign goods and payments

Despite Western sanctions, Iran in 2024 exchanged $125 billion worth of goods globally, according to Trade Data Monitor, a private firm. Iran is not a member of the World Trade Organization.

The bulk of its declared international trade, though, was with a handful of partners. The UAE, China and Turkey supplied nearly three-quarters of Iran’s merchandise imports. Four countries — China, Iraq, the UAE and Turkey — accounted for more than two-thirds of its non-oil exports.

On the supply side, the UAE held outsized importance. It was Iran’s biggest source of imported items and a gateway to financial channels that helped Iranian businesses make and receive international payments. Both roles kept Iran connected to the global economy.

As a reexport hub, the UAE processed shipments from foreign suppliers reluctant to deal directly with Iranian customers.

“From Iran’s perspective, the UAE can be replaced, but the Iranians are openly saying it’s not going to happen overnight,” said Alex Vatanka, a senior fellow at the Middle East Institute in Washington.

China has deep economic ties to Iran but depends less on the relationship

Beijing has economic interests in the Persian Gulf beyond Iran, and so far has avoided getting drawn into the conflict the U.S. and Israel initiated. China buys the overwhelming majority of Iran’s crude through opaque trading networks that bypass sanctions.

Its manufacturing clout and stranglehold on critical mineral supplies nonetheless give Beijing more room than Iran’s other partners to resist U.S. pressure, said David Lubin, a senior research fellow at Chatham House. Aggressive action against major Chinese banks and businesses could revive trade tensions as Chinese leader Xi Jinping prepares to meet with President Trump in Washington next month.

“I don’t see China playing ball by any means,” Lubin said.

China is both Iran’s largest reported export market and a supplier of essential parts and products, according to WTO and United Nations data.

During the Obama administration, Beijing did agree to reduce energy imports from Iran, said Atlantic Council fellow Daniel Fried, a former U.S. ambassador to Poland.

“We will want the Chinese to go a lot farther than they have gone in the past,” Fried said. “But it’s a lot harder now.”

China has experience helping an ally survive sanctions: It has long been North Korea’s economic lifeline and main diplomatic backer. Experts say China has avoided fully enforcing U.N. sanctions on North Korea and sent clandestine aid to help its impoverished neighbor stay afloat.

Expanding bilateral trade would create problems for Iran’s neighbors

Iranian Parliament Speaker Mohammad Bagher Qalibaf, who has been his country’s lead negotiator over the last six months, was in Iraq the day of the UAE’s trade suspension. A purpose of his visit, he said, was “speeding up efforts to expand joint cooperation among all countries in the region, without foreign interference.”

The U.S. dollar’s preeminence in international trade and finance, however, means none of Iran’s trading partners would antagonize Washington lightly, Vatanka said. “We’re still at a point where if the U.S. wants to hurt you, it will matter,” he said.

Underscoring potential consequences, Turkey settled a years-long U.S. dispute in July over the role of a state-owned bank in helping Iran evade sanctions through an oil-for-gold scheme. Trump also moved to lift sanctions on its fellow NATO member stemming from Turkey’s purchase of a sophisticated Russian missile system.

“I really don’t think Turkey would like to become the next country helping Iran to evade sanctions right now,” said Riccardo Gasco, an analyst at the IstanPol think tank in Istanbul.

Iran is a vital import source for Iraq and retains influence there through allied political factions and armed groups. Baghdad has sought closer economic and security ties with Washington. Since it invaded Iraq in 2003, the U.S. has significant control over the nation’s foreign currency reserves because they are housed in the Federal Reserve Bank in New York.

Oman, a frequent intermediary between Washington and Tehran, has found its balancing act suddenly precarious. Trump threatened Oman last week over its ongoing negotiations with Iran on the future management of the Strait of Hormuz.

One easy route for goods slipping past sanctions on Iran would be ports like Gwadar near the Persian Gulf in Pakistan, said Peter Harrell, a visiting scholar at Georgetown University.

“Ship an intermodal container of drone parts to one of the ports in western Pakistan and unload it onto a truck and have it driven across the border into Iran,” he said.

While Pakistan, a key ally and economic partner of China in the region, wants to increase trade with Iran, it faces competing pressures. It is serving as a key mediator between Tehran and Washington and has deep security ties with Saudi Arabia, Iran’s longtime regional rival.

Caspian Sea trade route alternatives unlikely to grow quickly

With the Strait of Hormuz mostly blocked and Russia’s war with Ukraine endangering ships on the Black Sea, Iran has sought to develop a “road of life” on the Caspian Sea, said Nikita Smagin, an independent analyst and a former Russian state news agency correspondent in Tehran.

Russia reportedly sent drones to Iran this year, repaying Tehran’s favor after Moscow’s full-scale invasion of Ukraine. It also rerouted exports to Iran via Caspian Sea ports like Astrakhan. Agricultural products make up 80% of Russia and Iran’s reported trade.

“Both economies are exporting natural resources and have little to offer each other,” Smagin said.

The other countries that border the Caspian — Azerbaijan, Turkmenistan and Kazakhstan — probably won’t rush to join in, said Umud Shokri, a fellow at George Mason University.

Yet Russia and Iran are already in an “axis of the sanctioned,” said Mark Galeotti, executive director of the Mayak Intelligence firm. For decades the pair have collaborated to thwart trade restrictions, and increasing bilateral trade in both “strategic goods” and contraband like military technology, microchips and Gucci handbags could be a next step.

“Pomegranates and tomatoes only go so far,” he said.

Chehayeb and McNeil write for the Associated Press. McNeil reported from Brussels. AP writers Amir Vahdat in Tehran and Dasha Litvinova in Tallinn, Estonia, contributed to this report.

WASHINGTON — The United States unveiled plans Monday for new sanctions against Iran that Trump administration officials said are designed to sever Tehran from the global financial system as the nearly six-month conflict between the two countries drags on.

Treasury Secretary Scott Bessent, who previewed the announcement last week as “economic D-Day,” described the measures as the opening of an all-out financial assault on the Iranian government and its trade partners — a group that includes China, India, Turkey and the United Arab Emirates.

“To those who enable Tehran, do not discount the cost of testing Washington’s resolve,” Bessent said at a news conference. “No nation should expect to enjoy the rewards of our system while helping those who seek to destroy it.”

Bessent said it was time for world leaders to “make a decision” between “America and Iran,” adding that President Trump has already been calling foreign leaders to make specific requests ahead of the new sanctions.

But when asked whom the president had been talking to, Bessent said he would not “name names.” He also said the secondary measure would not take effect immediately, arguing that the administration is trying to give “everyone the opportunity to remedy bad behavior.”

“Why would I want to blow up the global financial system?” Bessent said when a reporter pressed him on why the sanctions weren’t immediate. “We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious.”

The pressure campaign will build on a naval blockade and other sanctions the Trump administration has already imposed in its effort to force Tehran into a deal that ends the war on U.S. terms.

Trump’s latest economic push against Iran revives a familiar strategy from presidents of both parties, using financial leverage to pressure Tehran toward more serious negotiations over its nuclear program. Sanctions helped bring Iran to the table before a 2015 nuclear deal brokered by President Obama, but the agreement was widely criticized as weak by Republicans. After Trump withdrew from the agreement in his first term, a new “maximum pressure” campaign failed to secure a new deal.

Trump’s decision to return to a strategy of economic coercion has signaled to Iran that the fighting phase of the war is probably over, for now, with the U.S. administration choosing a path “neither of war nor of peace,” Masoud Pezeshkian, Iran’s president, said this week.

Iranian officials, who had been anticipating the move, pushed back on Washington’s strategy even before Bessent began speaking Monday.

Foreign Minister Abbas Araghchi told Iranian state media over the weekend that the sanctions amounted to a repackaged version of decades-old American pressure tactics that Tehran has already learned to withstand. Esmail Baghaei, Iran’s foreign ministry spokesman, warned of “grave consequences” for any countries cooperating with what he said was “illegal behavior” by the United States. And Mohsen Rezaei, the secretary of Iran’s Supreme Security Council, suggested that the economic pressure could shut down oil exports through the Strait of Hormuz, a threat that would ripple through global energy markets.

That defiance underscores the central gamble of Washington’s strategy. Rather than aiming sanctions at Iran alone, Bessent’s plan to potentially squeeze major economies like China and India over their ties to Tehran could pose a diplomatic risk to the U.S.

The fallout could also reach beyond foreign diplomacy as a hit to global markets also risks compounding Trump’s troubles at home ahead of the midterm elections, as Americans grow unhappy with the economy and their support for the conflict in the Middle East plummets. The Iran sanctions also land as the administration wages a separate trade fight with Canada, adding uncertainty to global and domestic markets.

Whether Washington will be able to apply pressure on Iran’s trade partners remains an open question.

China alone shares nearly $10 billion in bilateral trade with Iran, and paid roughly $31.2 billion for unreported Iranian crude oil imports in 2025, according to the U.S.-China Economic and Security Review Commission. That makes China the largest buyer of Iranian crude oil by a wide margin, accounting for more than 90% of Iran’s oil exports, according to the commission.

It is unclear whether Trump has spoken to China’s leader, Xi Jinping, about the sanctions. But the two leaders are set to meet in Washington next month, adding to the diplomatic dynamics of the moment.

Other trading partners have already made some moves.

The UAE said last week that it was suspending trade with Iran, a decision that followed accusations that Tehran had fired two ballistic missiles at the Emirates.

Afra Al Hameli, a spokesperson for the Emirati Ministry of Foreign Affairs, said in a post on Aug. 18 on X that all trade, commercial exchanges and financial transactions with Iran have been halted until further notice. She added that the Emirates was “firmly committed to safeguarding the integrity of the international financial system.”

Bessent said Monday that he expects other countries will “take similar actions as we continue our engagement.”

In an opinion article written for the Financial Times last week, Bessent has cast the new measures as the “single greatest financial offensive ever marshalled against an adversary.”

Bessent wrote that countries that “sever Iran’s remaining financial and commercial connectivity” will see their economies reinvigorated, and those who don’t will experience the end of their “lasting prosperity.”

“Any nation that serves as a financial artery of a withering regime should expect to share in its isolation,” he wrote. “To become a sanctuary for terror is to become, in the eyes of the United States, a global pariah.”

Ahead of the announcement Monday, Trump posted on Truth Social that Iran was “completely collapsing.”

Meanwhile, Iran’s central bank governor, Abdolnaser Hemmati, said the U.S. had already done all that it can against Iran and that the central bank had been shoring up its foreign currency reserves for months. Last week, he said Iran’s crude exports had “virtually stopped.”

“[The Americans] have done everything, so what else can they do?” he said in an interview with Tasnim News.

Despite his assurances that the central bank was working on preventing a devaluation of the Iranian rial, the currency has struggled to remain above a black market exchange rate of 2 million per dollar — a record low. The Central Bank rate stands at roughly 1.5 million rial to the dollar.

Though experts question the effectiveness of additional economic pressure on Tehran, Bessent’s threat to target Iran’s trading partners — especially the UAE, China and Turkey, who together comprise almost three-quarters of Iran’s foreign imports — will undoubtedly be painful for Iranians.

For example, Iran uses the UAE as a reexport hub and buffer, and receives vehicle spare parts from China, according to the Observatory for Economic Complexity. Iranian economic experts say both the agricultural and pharmaceutical sectors also rely on imports from countries such as Brazil and Turkey.

Ceballos reported from Washington and Bulos from Beirut.

Aug. 19 (UPI) — The United Arab Emirates announced it was indefinitely severing trade relations with Iran on Wednesday after accusing Tehran of firing two ballistic missiles at it.

The move was announced by the UAE’s Foreign Affairs Ministry communications director, Afra Al Hameli, who said “in light of regional escalations that undermine regional and international peace and security, all trade, commercial exchanges and financial transactions with Iran have been halted until further notice.”

“The UAE remains firmly committed to safeguarding the integrity of the international financial system, in line with international law and the highest global standards,” she said in a statement, while stressing the UAE’s “steadfast commitment to dialogue cooperation and regional integration as essential means of advancing peace, stability and prosperity in the region.”

The UAE-Iran trade relationship was worth billions a year, with the Observatory of Economic Complexity platform stating the UAE exports nearly $6 billion in goods, mostly electronics, to Iran each year, while Iran exports nearly $500 million, mostly in grapes, nuts and crustaceans.

The announcement came hours after the UAE’s Ministry of Defense said its air defense systems had detected two ballistic missiles fired from Tehran toward maritime traffic, with both falling into the sea, one within the UAE’s territorial waters.

“The Ministry of Defense confirms that it is on high alert and readiness to deal with any threats, and to firmly confront everything that targets undermining the state’s security or the security of navigation in the region, thereby ensuring the preservation of the state’s sovereignty, security and stability, and protecting its interests and national capabilities,” it said in a statement.

Iranian Foreign Ministry spokesman Esmaeil Baghaei rejected the accusations that Iran had launched missiles toward the UAE, saying Abu Dhabi was violating “the principle of good-neighborly relations” in doing so, Iran’s Mehr News Agency reported.

According to the UAE’s Ministry of Defense, its air defenses have engaged more than 550 ballistic missiles, 29 cruise missiles and more than 2,265 drones fired at it by Iran since the war began on Feb. 28. However, Tuesday’s launches were the first since May.

Iran denies launching missiles at the UAE, suggesting the incident was a ‘false flag operation’.

The United Arab Emirates has imposed an indefinite trade embargo on Iran after accusing Iranian forces of firing two ballistic missiles at the country, an allegation Tehran denies.

In a statement early on Wednesday, the UAE’s Ministry of Foreign Affairs said the decision was made in “light of escalations that undermine peace and security in the region”.

“All trade, commercial exchanges and financial transactions with Iran have been halted until further notice,” it added.

The statement came after the UAE’s Ministry of Defence said its air defences detected two ballistic missiles launched from Iran, with one falling outside the country’s territorial waters and the other landing within them.

In a follow-up statement, the ministry said the missiles had been “targeting maritime traffic” and promised to “resolutely confront any attempt to undermine the security of the nation or maritime navigation in the region”.

Iran’s Ministry of Foreign Affairs rejected the accusation as “baseless”, with spokesman Esmaeil Baghaei suggesting it was a “false flag operation” amid the war launched by the United States and Israel against his country.

Baghaei warned the claim “contradicts the principle of good neighbourliness” and urged regional parties to steer clear of what he called unfounded claims against Tehran, and argued that any honest assessment of the situation must also weigh the “malicious actions” of the US and Israel.

US naval blockade

Tuesday’s attack came a day after a 60-day window for US-Iranian peace talks expired without a breakthrough in the more than five-month-old conflict.

In the war’s first six weeks, Iran targeted the UAE with retaliatory strikes more than any other Gulf country, launching more than 530 ballistic missiles, dozens of cruise missiles and over 2,200 drones at what it described as US assets. Tuesday’s strike is the first targeting the UAE since May, and comes days after Abu Dhabi accused Tehran of attacking two of its state-owned ADNOC (Abu Dhabi National Oil Company) vessels in the Strait of Hormuz.

Iran has not claimed responsibility for the ADNOC attacks.

The trade embargo comes as the US maintains a naval blockade on Iranian ports, with President Trump signalling a pivot towards economic pressure, rather than military pressure, to compel Tehran into accepting US demands.

Mark Kimmitt, a retired US general and former assistant secretary of state, told Al Jazeera the UAE’s trade embargo could hit Iran harder than anything Washington has imposed, with Dubai having quietly become Iran’s most important trading partner, edging out both China and Turkiye to supply roughly a third of everything Iran imports each year.

The UAE had suspended direct cargo shipping between the two countries in early March, just days after the war began, and resumed trade only in late June via Dubai’s Jebel Ali Port.

“I don’t think that you can overstate or understate the importance of the trade, both financial and goods trade, between Dubai and Iran,” Kimmitt said.

That reliance runs deeper than goods on ships, given Dubai’s standing as a global financial hub, which Kimmitt said has long given Iran a discreet way to move money around international sanctions, cutting off a route Tehran has long relied on for years. “In many ways, the embargo being put on by the UAE is even more significant than the embargo being put on by the United States,” he said.

The former general said he doesn’t expect other Gulf states to follow suit immediately, predicting a “wait-and-see” approach even if Iranian attacks continue.

But he said the UAE’s move is significant enough that Tehran could interpret it as bordering on an act of war, likening it to the near-total embargo the US imposed on Japan after World War II.

Following the start of the US-Israel war on Iran,, the first match of the Iranian league was played last week.

Iranian clubs have been confirmed to play at neutral venues against their Qatari and United Arab Emirates opponents following the draw for the group stage of the Asian Champions League Elite.

Matches in the Asian Football Confederation’s (AFC) premier event, which was drawn on Tuesday, begin on September 14.

Tehran’s Esteghlal and Tabriz-based Tractor will face UAE sides Al Ain, Al Wasl and Shabab Al-Ahli, and Qatari clubs Al Gharafa, Al Sadd and Al Shamal, despite the ongoing conflict in the region.

Esteghlal and Tractor avoided the heavily favoured Saudi Arabian contingent.

Since the United States and Israel attacked Iran in February, Iran has struck targets in Qatar and the UAE, saying it is retaliating for allowing US bases to be used for strikes.

Iran’s neighbours have implored Tehran to stop firing at them. On Sunday, Iran claimed three of its pilots who went missing in March were being held in Qatar, though Doha denied the charge.

Iran’s domestic league was suspended in February as attacks began but returned last weekend with one match behind closed doors and others under capacity restrictions.

The AFC Elite features two 16-team regional zones. In the west, Saudi Arabia has five representatives, including Jeddah’s Al-Ahli, which is aiming to become the first club to win three straight Champions League titles. Coach Matthias Jaissle left this month to take over English Premier League side Newcastle.

Riyadh rival Al-Hilal is seeking a fifth title, while Cristiano Ronaldo leads Al-Nassr back into the competition after winning the Saudi Pro League in May.

In the east, Japan reached the final in the past two editions, with Kawasaki Frontale and Machida Zelvia losing to Al-Ahli, though neither has qualified this year.

Gamba Osaka won in 2008, and South Korea also supplies two former champions: Jeonbuk Hyundai Motors, aiming for a third crown, and Pohang Steelers, looking for a fourth.

The top eight from each group advance to the round of 16. From the quarterfinals onward, all matches will be played in Saudi Arabia, with the final set for May 1.

Gulf and Arab governments condemn Iran over missile strike on Emirati tanker.

The United Arab Emirates has accused Iran of striking a tanker owned by the Abu Dhabi National Oil Company (ADNOC) with a missile as it crossed the Strait of Hormuz, drawing swift condemnation from Gulf and Arab governments.

The UAE Ministry of Foreign Affairs said on Saturday that the vessel was hit in the early hours of the morning while transiting the strategic waterway, a chokepoint for a large share of the world’s seaborne oil.

Abu Dhabi described the strike as an act of piracy by Iran’s Revolutionary Guard Corps (IRGC) and called on Tehran to halt the attacks and reopen the strait fully and unconditionally.

ADNOC confirmed one of its ships had been targeted by a missile while crossing the strait, according to the state news agency WAM. ADNOC did not provide details on any damage to the vessel or its exact location at the time of the attack.

The UAE ministry said using the waterway as a tool for pressure or economic blackmail threatened regional stability and global energy security.

The IRGC have previously threatened action against any vessels transiting the strait if they are linked to Tehran’s adversaries, or if they fail to comply with Iranian directives.

ADNOC said on Friday that it had been significantly affected by what it described as unprovoked attacks on its personnel and assets, while continuing to meet customer requirements in an “exceptionally challenging environment.”

The company said 15 of its vessels had been attacked by missiles and drones while transiting the strait since the start of the conflict, including three this week, killing one crew member and injuring 20 others. ADNOC did not identify those responsible for the attacks in its Friday statement.

Regional governments condemn attack

Gulf Cooperation Council Secretary-General Jassim Mohammed al-Budaiwi condemned the latest attack as a “dangerous and unacceptable escalation”, calling for international action to protect maritime navigation and reaffirming the bloc’s solidarity with the UAE.

Qatar also condemned the attack and rejected the use of the Strait of Hormuz as a bargaining chip, calling for the waterway to be reopened without conditions. Doha’s foreign ministry warned that its continued closure threatened the interests of regional states and the global economy.

Saudi Arabia condemned the targeting of the tanker “in the strongest terms,” saying Iran’s continued attacks constituted a grave breach of international law and Resolution 2817. Riyadh held Tehran responsible for the consequences and demanded an immediate halt to the strikes.

Jordan also condemned the attack as a flagrant violation of international law, affirming its full support for the UAE.

The reported attack marks a sharp escalation in tensions around the Strait of Hormuz, where the UAE and its Gulf neighbours have pressed for the passage to remain open to international shipping.

US is carrying out more attacks on Iran, with Iranian media reporting explosions in Kish Island, Jam Island, Qeshm Island, Bushehr and Bandar Abbas.

HOLIDAYS to Dubai are back on track. The UK Foreign Office last week scrapped the advice against all but essential travel to the UAE, as well as nearby destinations such as Qatar and Bahrain.

And with hotels and attractions itching to welcome us once more, there are some great bargains to be had right now. Whether you’ve got bags of cash to spend or are hunting for ways to make your dosh go further, we’ve got you covered.

ON A BUDGET?

FROM beach club deals, through to discounted 5* “business lunches”, a classy trip can be yours but without the cost — if you know where to look.

One of the biggest expenses on a visit to the UAE city can be at the ever-popular beach clubs.

Expect to drop hundreds of dirhams once you’ve paid for entry, loungers, food and drink.

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Yet one of the newest on the block is also one of the most affordable — the Casablanca.

As part of landmark resort Atlantis, the club is a bargain, so long as you time your visit for a weekday.

Paying around £24 per person for a sun lounger, you can still enjoy the pool and beach without having to spend a fortune.

My hours were happily spent with a few Prosecco foam cocktails and truffle fries while enjoying the party atmosphere, thanks to the upbeat dance music being pumped out.

Dips in the pool were followed by lolling on the beach swing, before sunning myself to dry off on my striped lounger.

Want to go higher? When it comes to a rooftop pool, Aura can’t be beaten, taking the title of the world’s tallest 360-degree infinity pool.

But if you love the views and aren’t fussed about the pool, try their lounge breakfast package.

For a fraction of the price of using the pool, you get a breakfast and two drinks.

I might have stayed dry, but I got those influencer-style shots posing next to the water without the cost. From the miso eggs benedict to pomegranate juices, I promise it’s worth the early start.

For more of the high life, also drop in at Ce La Vi. The famous bar has some of the best views of the Burj Khalifa, the world’s tallest building.

But you’ll be joining the locals if you visit at lunch rather than dinner — and will stay in your budget, too.

Dinners can see a main course alone costing £30. Yet the three-course lunch set menu will set you back just £28, including a glass of wine.

But while Dubai is certainly a foodie city, the real flavour of the place is to be found in the street markets.

Head to the Grand Souk, where you’ll find breads stuffed with cheese or Nutella for £1.22, or Iranian falooda — a sorbet-like dessert made of thin rice noodles and syrup — for £1.

You’ll certainly need some energy for going shopping afterwards, with streets of spices and gold jewellery (Dubai is home to the world’s biggest gold ring — 21-carat, and weighing 59kg).

And after all that, your well- deserved rest will not tip your budget over the edge — Brits will be pleased to spot the famous purple signage of Premier Inn, there being seven across Dubai.

Yet these are pimped-up Premier Inns, with gyms and rooftop pools — as well as the familiar Costa outlet in the lobby.

And who knew they’d be even cheaper than the UK, with rooms for as little as £21 a night during the off-season? That means you could spend a week in Dubai for under £150 — half the price of one night at the Atlantis.

Otherwise there’s Rove, the UAE’s own budget hotel chain.
Slightly pricier at £44, it has a bit more to it, from ice-cream trucks to beach- bar happy hours.

So don’t believe the rumours that Dubai has to be expensive.

Live the high life — often literally — and still come home with some change to spare.

MORE CASH TO SPLASH?

IN my opinion, upgrading your hotel generally comes with a multitude of benefits that extend way beyond just a swankier room.

The Palm ­— so named because of its fronds of sand jutting out into the sea that resemble the leaves of a palm tree — is one of the most desirable areas to stay in but you can get the same luxury for a fraction of the price elsewhere.

Book one of the 5* resorts that sit at the bottom of its branch, along Mina Seyahi beach.

The 5* Westin is a sprawling resort that features several pools and seemingly more sun loungers than there are rooms.

With a whopping ten restaurants on site, you don’t even need to leave the resort.

Kids have use of all the fun-packed waterslides at neighbouring hotel Le Meridien, while parents can kick back in the adults-only area where there is a constant supply of mellow music and freshly shaken cocktails.

Adults after a more sophisticated atmosphere, however, will likely prefer the trendy 5* W Hotel, home to bold bedrooms and the sky-high Attiko restaurant (for those aged 21 and over).

The menu of Asian-fusion bites is designed for sharing — try the spicy tuna taco topped with avocado and yuzu and the crispy scallop, served in its shell.

These are dished up alongside cocktails that are as jaw-dropping as the views of twinkling hotels at night.

It’s safe to say fancy food isn’t in short supply in Dubai. In fact, this Middle Eastern city is now catching up with some of the world’s most celebrated foodie destinations — competing with the likes of Tokyo and Paris.

The Michelin Guide for Dubai features 117 restaurants for 2026.

Last year, Avatara, in Dubai Hills, became the first vegetarian Indian restaurant in the world to earn a Michelin star. And having sampled all 17 delicately crafted courses on its flavour-packed tasting menu, I can see why it’s ranked so highly.

The experience is wonderfully theatrical, and the plates could be considered works of art, not just the meals — decorated with edible flowers, rich sauces and billowing dry ice.

It costs around £150pp for the tasting menu, but my word, you’ll leave satisfied and full to the brim. But while Avatara may have the wow factor for serious foodies, those who prefer more of an experiential dinner should book a Lady Nara cruise.

This fancy wooden vessel runs breakfast and dinner sailings at various times of day, but the most spectacular has to be at night when Dubai’s glowing skyscrapers are fully lit.

We sailed between various landmarks while tucking into a feast cooked up in the kitchen below deck. Hors d’oeuvres were followed by huge bowls of fresh leaves and artichokes topped with shaved Parmesan, and hearty meats served in zingy sauces, while gentle music hummed in the background.

If fine dining isn’t your thing but you still want to push the boat out a bit, you can always spend that hard-earned dosh on a flight upgrade instead.

Emirates is the official airline of Dubai and is currently the only one offering direct flights from the UK. It launched a fourth daily flight between Dubai and Gatwick at the start of this year, giving travellers even greater flexibility.

The experience in Emirates business-class cabins is as flashy as Dubai itself, thanks to the doting crew, as well as the on-board cocktail bar — where you can while away the eight or so hours on board sipping on martinis made at 38,000ft.

A CITY said to be an alternative holiday destination to Dubai is getting its only flight route from the UK.

Air Arabia will launch the new flights from London Gatwick to Sharjah in the UAE next month.

The route, starting from July 4, will operate twice a day, with flights from £205 each way.

It will be the first time the airline operates from the UK, and the only direct route to the UAE city.

Jonathan Pollard, Chief Commercial Officer, London Gatwick, previously said: “Demand for flights to destinations across the Middle East has really taken off this year and we have been delighted to offer passengers across London and the South East an increasingly fantastic range of routes and choice of carriers.”

Sharjah is the third biggest city in the United Arab Emirates behind Dubai and Abu Dhabi.

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It is often touted as a more family-friendly destination and said to be the cultural capital of the UAE.

Popular attractions includes the UNESCO Cultural Capital of the Arab World and the Al Montazah Parks amusement park

However, it does follow stricter rules than Dubai – such as alcohol being banned a cross the entire city.

But holidays to the UAE are back on the cards after the UK Foreign Office lifted the travel ban.

The ban on holidays to the UAE came after a number of attacks across Dubai due to the Iran War, which included to Dubai Airport.

Here are some other new routes launching from London Gatwick this year.

The Foreign Office has issued fresh travel advice for 14 countries following the announcement of a ‘memorandum of understanding’ between the US and Iran amid Middle East tensions

Significant travel updates have been released by the Foreign Office for 14 countries after the US and Iran revealed a ‘memorandum of understanding’, in the wake of the Middle East conflict.

The Foreign Office has now removed its travel ban to destinations including the United Arab Emirates and Qatar, while also providing additional updates for 12 other nations. The Foreign, Commonwealth & Development Office (FCDO) published new guidance on Thursday, 18 June, for the 14 countries amid “regional tensions”.

On the Foreign Office’s ‘warnings and insurance’ section for each nation, they confirmed: “The US and Iran have announced a memorandum of understanding in relation to the conflict in the Middle East.”

The complete list of nations receiving the updated guidance includes: Cyprus, Turkey, Oman, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Jordan, Yemen, Syria, Palestine, Israel, Iran and Kuwait, reports the Express.

While the FCDO has warned of regional tensions, it “no longer advises against all but essential travel to the UAE”. Since March, there had been a warning in place against all but essential travel to the UAE, but with the update today (June 18), it’s the first time it’s been waived.

In additional guidance, the FCDO outlined that should “hostilities resume”, Brits should take the following steps:

• Read if you’re affected by a crisis abroad – GOV.UK. This includes guidance on “how to prepare for a crisis” with suggestions on what you might include in your emergency supplies and “what to do in a crisis”
• Sign up to FCDO Travel Advice email alerts
• Monitor local and international media for the latest information
• Sign up to local information alerts/resources and follow the instructions of the local authorities
• Keep your departure plans under review, and ensure your travel documents are up to date.

The Foreign Office has lifted its warning against travelling to the United Arab Emirates including Dubai and Abu Dhabi

The Foreign Office has lifted its travel ban to the United Arab Emirates.

The FCDO has had a warning against all but essential travel to the UAE in place since March, due to the Middle East war, but today (Thursday 18th June), it updated its advice and no longer warns against travel to the region. It has also issued updates for 14 countries including Cyprus and Turkey.

However, the government body still has a stark warning in place for Brits. As part of an update on ‘regional tensions’ it warns:

“The US and Iran have announced a memorandum of understanding in relation to the conflict in the Middle East. The situation remains unpredictable and attacks could resume at short notice.

“Should hostilities resume, British nationals should:

• read If you’re affected by a crisis abroad – GOV.UK. This includes guidance on “how to prepare for a crisis” with suggestions on what you might include in your emergency supplies and “what to do in a crisis”
• follow advice from the local authorities
• sign up to FCDO Travel Advice email alerts
• monitor local and international media for the latest information
• stay away from areas around security or military facilities
• keep your departure plans under review, and ensure your travel documents are up to date
• if you are advised to take shelter, stay indoors or find the nearest safe building or designated shelter. An interior stairwell or a room with as few external walls or windows as possible may provide additional protection. The greatest risk is from falling debris caused by intercepts, and you are safest inside a secure structure

“Before the 8 April ceasefire, the Iranian regime had stated its intention to target locations in the Gulf associated with the US and Israel. This included US or Israeli-linked organisations, businesses, facilities and institutions. Iran has previously targeted civilian infrastructure across the region such as ports, hotels, roads, bridges, energy facilities, oil production sites, water systems, and airports.”

The United Arab Emirates has agreed to unlock billions of dollars for Iran, pursuing a tactical shift after weeks of Iranian attacks on the wealthy Gulf Arab state amid its ongoing war with the United States and Israel, four sources told the Reuters news agency.

The report on the move coincided with the final stages of broader negotiations between Tehran and Washington to end the war. Diplomats say those talks involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under US sanctions.

Two regional sources told Reuters that the UAE had agreed to release a total of $10bn, more than $3bn of which had already been delivered.

Two other sources with knowledge of the ⁠arrangement put the total funds involved at $20bn, adding that the move had been agreed in return for a halt to Iranian attacks on the UAE.

One of the sources with knowledge of the arrangement also said a first tranche of $3bn had already been made available.

Reuters could not establish whether the funds earmarked for the transfers belong to the UAE or originate in long-blocked Iranian accounts in the UAE banking system, or elsewhere.

But a UAE official, asked to comment on the transfer, said the country was trying to ease tension and foster peace.

“The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across ‌the region, while advancing lasting peace and stability,” the official said.

“The UAE supports efforts, including those undertaken by the United States, to protect the peoples of the region from the repercussions of conflict.”

The White House did not immediately respond to Reuters’s request for comment on the move.

‘Red line’ workaround

Earlier on Friday, Vice President JD Vance said that frozen funds would not immediately be released to Iran upon signing a deal with the US.

He said the potential deal is structured to ensure that economic benefits would flow to Tehran if it meets its obligations.

There was no immediate response from Iranian authorities to a Reuters request for comment on the move.

None of the sources cited by Reuters would agree to be identified due to the sensitivity of the matter.

The arrangement signals a striking pivot from the open animosity of UAE-Iran relations through much of the war, when Iranian attacks emptied Dubai’s hotels, ⁠drove some expatriates to flee and shook the reputation for safety that is central to the country’s position as a premier business hub.

One of the ⁠sources with knowledge of the arrangement said the move offered a way to help solve the conflict between the US and Iran without either side crossing its red line. Iran can claim it extracted compensation for war damages. Washington can insist it paid nothing.

Abu Dhabi, meanwhile, obtains its own security and protects Dubai’s hub status, while framing the move as an investment in rebuilding regional trust.

The other source with knowledge of the arrangement said that in return for the disbursement, Iran ⁠would halt missile and drone attacks on the UAE, and there would be a rebuilding of bilateral ties, including intelligence sharing and economic cooperation.

The source added that Iran had approached at least two other Gulf Arab countries to make a similar arrangement.

The last known direct attack by Iran on ⁠the UAE was more than a month ago – a May 4 strike on the Gulf state’s Fujairah port on the Gulf ⁠of Oman.

The first source with knowledge of the arrangement said talks had started several weeks ago but quickened pace when officials of Iran’s powerful Revolutionary Guard visited Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE’s national security adviser and deputy ruler of Abu Dhabi, and stayed at his guest house.

That trip was followed by a visit by UAE officials to Tehran to negotiate the details of the mechanism.

Frozen funds

Dubai’s banks have long held substantial Iranian-linked deposits, much of them now immobilised under US sanctions that police the global dollar-clearing system and expose any foreign bank dealing with blacklisted Iranian entities to being cut off from the US financial network.

On April 11, a senior Iranian source told Reuters that the ‌US had agreed to release Iranian frozen assets held in Qatar and other foreign banks, although a US official swiftly denied the assertion.

The source, who declined to be named due to the sensitivity of the matter, said that unfreezing the assets was “directly linked to ensuring safe passage through the Strait of Hormuz”, a key issue in talks aimed at ending the conflict.