Iran-US war: Dubai govt, companies in huddle to assess economic impact
Dubai: With Iranian missiles and drones continuing to fall on Dubai, hampering business activity in the glitzy UAE emirate, the government and industry bodies are holding talks with businesses to assess the economic impact of the war besides ascertaining the need for support measures.
Dubai Chambers, a government-backed industry body, has reached out to its members to gather feedback on supply chain disruptions, rising costs, and operational concerns.
While the overall financial impact is yet to be ascertained, industry representatives told ET that freight and clearing charges have risen sharply, triggering up to a threefold surge in costs in some cases. They also noted that with shipping getting severely disrupted, overseas suppliers are seeking advance payments, affecting small and medium enterprises (SMEs) the most.
Also read: H omeward Ho! Indian professionals in West Asia looking east
The industry body noted that the Dubai government is actively engaging with them to understand and address bottlenecks. This could eventually lead to some relief measures getting extended, comparable to the ones during Covid.
"Overall, businesses remain confident about continuity...Dubai Chambers has initiated dialogue with members to understand the challenges they are facing and what support may be required from the authorities," said Sahitya K Chaturvedi, secretary general, Indian Business & Professional Council (IBPC) Dubai.
Also read: Auto industry warns diesel truck fleet could be immobilised
"There is some disruption in the supply chain. Container handling and logistics are facing uncertainties, particularly for building materials linked to ongoing development projects in Dubai, and other key sectors," he said.
Dubai Chambers, a government-backed industry body, has reached out to its members to gather feedback on supply chain disruptions, rising costs, and operational concerns.
While the overall financial impact is yet to be ascertained, industry representatives told ET that freight and clearing charges have risen sharply, triggering up to a threefold surge in costs in some cases. They also noted that with shipping getting severely disrupted, overseas suppliers are seeking advance payments, affecting small and medium enterprises (SMEs) the most.
Also read: H omeward Ho! Indian professionals in West Asia looking east
The industry body noted that the Dubai government is actively engaging with them to understand and address bottlenecks. This could eventually lead to some relief measures getting extended, comparable to the ones during Covid.
"Overall, businesses remain confident about continuity...Dubai Chambers has initiated dialogue with members to understand the challenges they are facing and what support may be required from the authorities," said Sahitya K Chaturvedi, secretary general, Indian Business & Professional Council (IBPC) Dubai.
Also read: Auto industry warns diesel truck fleet could be immobilised
"There is some disruption in the supply chain. Container handling and logistics are facing uncertainties, particularly for building materials linked to ongoing development projects in Dubai, and other key sectors," he said.
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