As the confrontation between Iran, Israel, and the US grows, NRIs in Dubai are rushing to sell their gold holdings. They are putting cash liquidity ahead of traditional safe-haven investments. This pattern shows that people are worried about the economy as airspace closures and port delays affect trade in the region.
Conflict Background
The Iran war started on February 28, 2026, when the US and Israel attacked Iran. Iran then retaliated by attacking energy sites in the Gulf and causing problems in the Strait of Hormuz. This has caused cargo to be stuck, planes to be cancelled in UAE airspace, and Dubai’s Jebel Ali port to be affected, which has affected the flow of oil (20% of the world’s supply) and gold.
Dubai is a major gold refining and export centre for Asia, but shipments from Switzerland, the UK, and Africa are delayed, causing a $30 discount on sales as uncertainty continues for the eleventh day.
NRI Selling Surge
A significant group of expatriates from India, Non-Resident Indians (NRIs), are flocking to Gold Souk jewellers where they are redeeming jewellery and bars at 4-5% discount in a bid to lock in cash, with more than 100 sellers passing through each store in a day, buying around 1 kg each. As the rupee sinks and gold transport hurdles (e.g. 20-40g free from tax) prevent them bringing wealth back, they send home funds or house in USD accounts.
Dealers with no brand in Bur Dubai and Deira will sell without invoices after government approval, advising victims return with the jewelry they wore.
Gold Market Impact
On March 9, Dubai 24K gold traded for AED 613.25 per gramme, down AED 10 from the previous day’s high of AED 623.
NRIs are selling even though gold is a safe haven since they can’t move it around like they can with digital financial transfers. Experts say it’s easier to sell locally than to ship it out.
Broader Gulf Disruptions
In addition to gold, 800 to 1,000 agricultural containers from Maharashtra are held at Jebel Ali, ruining grapes worth crores and making Indian ports like JNPT very busy. Energy strikes stopped Qatar’s LNG (20% of world supply) and Saudi refineries, which sent Brent crude prices up to $80 to $110 per barrel and raised fears of a recession.
India’s gold imports stay the same in the short run because of stockpiles, but long-term problems might make supplies tight.
Economic Ramifications
Gulf financial markets are reevaluating risks as losses in the aviation and tourist industries grow. Emirates aircraft being grounded are also slowing down the area. NRIs are moving away from gold because the USD is rising and there are risks of speculation. This shows that investors’ views on Gulf stability have changed.