Dubai and Abu Dhabi’s success in turning their country into the “Switzerland of the Middle East” can be counted by the number of hedge funds, influencers and white-collar expatriates who’ve been pouring in for the sun, sea and zero income tax. After the past few days, however, they’ve been tallying something very different: The number of interceptors left to counter Iran’s barrage of missiles as war engulfs the region. The safe-haven veneer of the United Arab Emirates and its neighbors is cracking badly.

Since the weekend, the UAE’s Instagram-friendly financial centers (and holiday spots) have been rattled by the sight of fires and missile debris after defense systems scrambled to intercept 165 ballistic missiles, two cruise missiles and 541 drones from Iran. Supermarkets have been swamped by panic buyers, and Dubai International Airport, the world’s busiest travel hub, fell silent.

© Bloomberg