Marine industry reacts to Middle East conflict

Following the US-Israel strikes launched in Iran on Saturday (28 February 2026), Iran has retaliated with a wave of attacks across the region.

On Monday (2 March 2026), US Secretary of State Marco Rubio said “the hardest hits” on Iran are “yet to come”. The widening conflict has sent oil prices soaring and caused travel chaos across the region, and rising tensions across the Middle East have prompted widespread disruption to regional airspace and shipping routes, raising concerns for trade, tourism and marine events scheduled in the Gulf.

Dubai International Boat Show to make update

MIN reached out to the organisers of Dubai International Boat Show, which is due to be held on 8-12 April 2026. Organisers have confirmed they are preparing a “clear and consolidated” update, which is expected this week.

While no formal changes have yet been announced, stakeholders are monitoring developments closely.

Commercial air traffic across parts of the Gulf has been suspended, grounding most passenger and cargo services. Limited repatriation and repositioning flights are understood to be operating under special approvals.

Implications for the marine sector

The United Arab Emirates has positioned itself as a stable, tax-efficient hub for international business and marine investment. In recent years, the region’s leisure marine sector has expanded significantly, supported by marina development, yacht manufacturing and high-net-worth inward migration.

But security and safety have been under fire over the past few days. Some of the UAE’s most iconic buildings have been damaged – including the Fairmont The Palm hotel in the Palm Jumeirah area and the Burj Al Arab hotel – one of the most recognisable landmarks in the city. Marinas are currently closed in the UAE.

The Gulf’s maritime and boating sectors have weathered multiple periods of conflict in the past, and the ramifications of the current situation are extremely dependent on how long the conflict lasts.

Richard Haws, chairman of Global Marine Business Advisors and representative for the Kingdom of Saudi Arabia, says: “Leisure yachting – both participating and investing – requires stable, predictive environments to flourish. The outcomes of the current military campaign cannot yet be quantified as it is still ongoing, but it is unlikely to be positive for leisure marine growth in the short term across the GCC.

“That the Arabian Gulf is nearing the end of its season is positive, but it is too soon to forecast any conclusions at this stage.”

MIN has reached out for comment from builders Gulf Craft and Sunreef, which operate large-scale manufacturing facilities in Umm Al Quwain and Ras Al Khaimah on the Gulf Coast.

Vital shipping under scrutiny

According to a report from Reuters, an Iranian Revolutionary Guards senior official said on Monday (2 March) that the Strait of Hormuz is closed and Iran will fire on any ship ​trying to pass, Iranian media reported.

Any sustained disruption in the Strait of Hormuz – one of the world’s most strategically significant maritime corridors – would have substantial implications for global trade flows, manufacturing supply chains and marine logistics.

Air traffic update

On Monday evening (2 March 2026), news outlets reported that a limited number of flights were helping repatriate civilians.

According to statements carried by state news agency WAM, ‘the UAE national carriers announced the operation of exceptional flights starting Monday evening (2 March)’.

Etihad Airways has resumed some limited flight operations from Abu Dhabi, even as all scheduled commercial services remain cancelled.

In a statement, Etihad Airways confirmed that all regular commercial flights to and from Abu Dhabi are still cancelled. The airline stated: ‘Some repositioning, cargo and repatriation flights may operate in coordination with UAE authorities and subject to strict operational and safety approvals.’

The airline stressed that these flights are being operated only under specific approvals.