Australian Business Owners in Dubai Adapt Operations Amid Rising Tensions

Since the recent US-Israeli strikes on Iran, Australian business owner Kate Midttun has implemented several operational changes at her marketing agency, Acorn Strategy, based in Dubai, United Arab Emirates (UAE). Midttun, who relocated to Dubai 17 years ago from Brisbane, expressed that the current situation is unprecedented for her and many around her.

Midttun’s immediate focus has been on supporting her staff, most of whom are expatriates without extended family in the region. She has introduced free counselling services and offered the option for employees to work from home. “Ninety per cent of my team are expats, and so they are not here necessarily with an extended family,” she stated.

The UAE’s population of approximately 11 million is predominantly comprised of expatriates, making up about 88% of the total population. Around 25,000 Australians live and work in the UAE, operating over 300 Australian companies across various sectors, including construction, education, and health services.

While many businesses are feeling the effects of escalating tensions in the Gulf region, Midttun noted that this is not the first time she has had to adjust her operations. She highlighted the significant impact of previous conflicts in Syria, Lebanon, and Gaza on mental health and workplace dynamics. “This isn’t the first time we’re addressing mental health because of issues brought about by war,” she remarked.

Despite the rising tensions, including strikes on the UAE, Midttun affirmed that she has no plans to leave. “It’s difficult to say if there’s any longer-term impact to business … but at this point, I don’t see any need to leave. I feel very safe here,” she explained. She acknowledged the global political climate’s unpredictability but remains committed to her current location.

Shifting Business Models

Another Australian business owner in Dubai, Donna Benton, has also adapted her operations in response to the current situation. Having lived in Dubai for 25 years, Benton oversees thousands of employees across her hospitality and retail businesses. She emphasized the importance of communication and leadership during these uncertain times. “You have to communicate, you have to lead from the top, and you have to make them feel safe,” she said.

Benton praised the UAE government’s proactive approach, which has contributed to a sense of safety and support for her business. According to a statement from the UAE Defence Ministry, the country has intercepted 189 Iranian missiles since the onset of the US-Israeli attacks on Iran. The statement indicated that 175 missiles were destroyed, while others fell into the sea or landed on UAE territory. The conflict has resulted in at least three fatalities and 68 minor injuries within the UAE.

“They’ve been open, they’ve been honest … they’ve been prepared for this for 20 years as a backup and, sadly, they’ve had to use it,” Benton noted. She expressed her deep connection to the UAE, stating, “It was extremely terrifying on Saturday night, like it would be for anyone … but everyone who lives here, we love the country, we stand by it, and even after this, I think I actually love it even more.”

In light of the current circumstances, Benton has shifted part of her hospitality business model to enhance delivery services for customers who prefer to stay indoors. “This is essentially also a time where it forces you to strategise. You have to think outside the box as well,” she added.

Exporters Impacted

While many businesses in the UAE have not faced significant disruptions, exporters are experiencing challenges. Mohamed Hage, president and national chairman of the Australia Arab Chamber of Commerce and Industry (AACCI), reported that some exporters are already encountering issues, particularly those shipping perishable goods. He highlighted concerns over longer transit times, increased freight rates, and potential delays, which lead to higher operational costs and supply chain risks.

“The current members that have exported goods via shipment in the last week or two would be concerned because those goods are perishable,” Hage stated. He noted that Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, are crucial markets for Australian agricultural, resources, and automotive products.

According to data from the Department of Foreign Affairs and Trade (DFAT), the two-way trade in goods and services between Australia and the GCC was valued at approximately $24 billion in the 2024-25 financial year. Hage remarked that it has been decades since he has witnessed such disruption and volatility in the region. “This is why we hope there is an ease [in fighting] to get back to facilitating trade,” he said.

While prolonged disruptions could severely impact some businesses, Hage believes that many are more resilient than they were a decade ago. He attributed this resilience partly to lessons learned during the COVID-19 pandemic, which improved businesses’ ability to navigate supply chain disruptions. “Australia has a very strong reputation in agricultural products. When we see these disruptions ease, you will see the trade flows start to pick up again,” he explained.

Hage also emphasized the importance of diversification for exporters, advising them not to rely solely on one market. “It’s very important, as an exporter, that you diversify in other regions, and that way, it provides a form of cushion,” he stated.

Geopolitics Factored into Move to UAE

Josh Hannan, who runs an air-conditioning maintenance business in Dubai, also considered geopolitical factors when relocating to the UAE 20 years ago. He services hotels, commercial buildings, military bases, and villas across the region. While he acknowledged that the current conflict has been “a little unsettling,” he described it as mostly business as usual for him.

“Myself and my wife are quite relaxed and feel there is no need to make drastic decisions,” Hannan said. He emphasized the importance of maintaining normalcy for his staff during these times. “The current situation is not affecting business at all; however, it is important to function as usual in order for our staff not to freak out.”

Hannan employs over 30 people across multiple sites in the UAE. He compared the risks of living in Dubai to those in other major cities worldwide, stating, “Go live in London, LA, Sydney, Brisbane, New York, Paris, Brussels, Rome. You will find more risk in your day-to-day life than what we face in the UAE.” He expressed confidence in his decision to settle in Dubai, saying, “It gives me great comfort knowing I have made the correct decision for my family to live in this great country that we call home.”

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Published on 2026-03-08 22:44:00 • By Editorial Desk