'Dubai and Abu Dhabi could be blown up': Jeffrey Sachs warns UAE against entering Iran war- Moneycontrol.com

Top US economist Jeffrey Sachs has warned the United Arab Emirates against further involvement in the intensifying conflict with Iran, saying such a move would place key cities including Dubai and Abu Dhabi at immediate risk. Speaking to ANI and quoted in a Moneycontrol report published on March 29, 2026, Sachs described the Emirates as "resort areas" and financial hubs unsuited to military confrontation, and said the UAE had “got itself into an absurd mess” by aligning with the United States and Israel.

"Basically, Dubai and Abu Dhabi could be blown up if the UAE gets into the war. These are resort areas. These are tourist destinations. These are not fortified missile defence areas. These are places where rich people are going to party and put their money. And to enter a war zone is to defeat the entire purpose of a place like Dubai," Sachs said.

Context and criticism of Gulf strategy

Sachs criticised Gulf states' participation in the Abraham Accords, calling the move an “invitation for disaster” that increased dependence on American military protection. He told ANI that Gulf governments had "bet everything on American protection" and that this represented a "fundamental miscalculation." Reiterating a maxim associated with former US Secretary of State Henry Kissinger, Sachs added: "Every day I repeat Kissinger's famous adage, and I'll repeat it at this point as well, that to be an enemy of the United States is dangerous, but to be a friend is fatal."

He urged UAE leaders to reassess their strategic alignment and prioritise national security over continued escalation. "I don't want to be misunderstood, but the naivete of this announcing yesterday that we're going to join this effort against the evil Iranians, and we're going to continue to honour our commitment to put trillions of dollars into the United States. Come on. Enough. Protect yourself. Understand the situation. You think that doubling down on a losing proposition is really the right way to proceed at this point, but that's exactly what they're doing," Sachs said.

Regional developments

• Moneycontrol World Desk first published the story on Mar 29, 2026, 06:34 pm IST.
• Iran's Ministry of Foreign Affairs issued a regional warning on March 20, urging countries to prevent US use of their bases for strikes against Tehran. The ministry posted: "Foreign Ministry Spokesman Emphasises the Urgent Need for Regional Countries to Act to Prevent the Continued Use of Their Territory and Facilities by America and the Zionist Regime for Conducting Military Aggression Against Iran."
• The Iranian foreign ministry spokesperson also warned that countries hosting US military facilities could face consequences if those bases were used in attacks on Iran.
• Gulf states have condemned Iranian strikes on their energy infrastructure and have signalled stronger support for Washington amid the deepening crisis, according to the Moneycontrol report.

Outlook

Sachs’ remarks add to an intensifying public debate over Gulf states' positions in the widening confrontation between Iran and the US-led coalition. His warning — that the UAE’s commercial hubs are ill-suited to the risks of open conflict — frames the strategic cost of alignment for a country built around tourism, finance and global connectivity. With Tehran issuing explicit warnings about the use of regional bases and Gulf capitals condemning attacks on energy infrastructure, policymakers in Abu Dhabi and Dubai face pressure to weigh immediate security risks against long-term strategic commitments.