Already Have a UAE Free Zone Company? What to Do During the Iran Conflict

If you run a free zone company in the UAE, the Iran conflict is not an abstract geopolitical event. It is a direct operational threat. 186 missiles and 812 drones have targeted UAE territory. Jebel Ali port, Jumeirah, and Abu Dhabi airport have all been hit. The Strait of Hormuz is shut. This guide tells you exactly what to do right now to protect your business.

Protect Your Banking First

Your bank account is your company’s lifeline. Protect it before anything else.

Check your transfer capability today. Log into your business banking portal and confirm you can still send and receive international transfers. Several UAE banks experienced processing delays in the 48 hours following the initial strikes, and some branches in affected areas remain closed. If your primary branch is in Jebel Ali or Jumeirah, call your relationship manager directly.

Diversify your banking immediately. If your entire treasury sits in one UAE bank account, you are exposed. Open a Wise business account or activate an international backup account. Transfer enough to cover 2 to 3 months of non-UAE expenses. This is not about moving everything out — it is about ensuring you can still pay suppliers, staff, and yourself if UAE banking faces further disruption.

Check for Iranian asset freeze exposure. The UAE has frozen Iranian-linked assets. If any of your clients, suppliers, or partners have Iranian connections — even indirect ones — your transactions involving those parties could be flagged or frozen. Review your counterparty list now. Banks are running enhanced due diligence and will freeze first, ask questions later.

The stock market halted for two days. If your company holds UAE-listed investments or your treasury strategy involves local equities, assess your liquidity position assuming markets could halt again with little notice.

For companies that already struggle with UAE banking, this conflict makes everything harder. If your account was already under review or restricted, expect longer resolution times.

Licence and Visa Renewals

This is where most free zone owners will feel the conflict’s impact directly.

Licence Renewals

Your free zone licence does not care about geopolitics. It expires on its scheduled date regardless of whether missiles are flying. But here is what has changed:

• Processing times are extended. What normally takes 2 to 5 business days is now taking 7 to 14 days at most free zones.
• Several zones have announced grace periods. Check directly with your authority — DMCC, JAFZA, IFZA, and RAKEZ have all communicated some form of flexibility to licensees.
• Do not assume the grace period applies to you. Call or email your free zone. Get written confirmation. A verbal “don’t worry” from a customer service agent will not protect you from late penalties once normal operations resume.

If your renewal is due within the next 90 days, start the process now. Do not wait for the conflict to resolve. Submitting your renewal application — even if processing is slow — establishes your intent and protects you from lapse penalties. Late renewal penalties at most zones range from AED 1,000 to AED 5,000, and they compound. Read our full breakdown of hidden renewal costs to understand the penalty structure.

Visa Renewals and New Applications

Visa processing is the most disrupted government service right now.

• New visa applications are effectively paused. Immigration offices are operating at reduced capacity, and medical fitness testing centres in affected areas are closed.
• Renewal applications submitted before the conflict are still being processed, but slowly.
• Entry permits for new employees are delayed indefinitely. If you were planning to hire and sponsor someone, that timeline has shifted by weeks at minimum.
• Existing residence visas remain valid. Your visa does not expire because of the conflict. But if it was already close to expiry, the reduced processing capacity means you need to act fast.

The practical move: if your visa expires in the next 6 months, submit your renewal application today. Processing delays are only going to get worse before they get better.

Insurance: Check Your Coverage Today

Open your insurance policy documents right now. Not tomorrow. Today.

Your Standard Policy Almost Certainly Excludes This

Standard commercial insurance policies in the UAE exclude war, terrorism, and military action. This is not a grey area — it is explicitly written in the exclusions section of virtually every policy. If your office, inventory, or equipment suffers damage from missile strikes or drone impacts, your standard policy will not pay.

The 57 drones that struck UAE targets and the 4 deaths confirm this is an active war zone by any insurer’s definition. Your insurer’s claims department will cite the war exclusion clause. Do not assume otherwise.

War Risk Insurance

Separate war risk policies exist, but premiums have exploded 300 to 500 percent since the conflict began. If you have physical assets in the UAE — warehouse inventory, office equipment, vehicles — get a quote today. The price will be painful. But it is less painful than absorbing a total loss.

Cargo and Shipping Insurance

If your business depends on goods moving through the Strait of Hormuz, your cargo insurance is almost certainly void for that route. Marine insurers have pulled coverage for Gulf transit. This means any goods currently in transit are uninsured, and new shipments through Hormuz cannot be insured at any price right now.

For businesses that import or export physical goods, this is an existential issue. See the supply chain section below.

Health Insurance

Your employees’ health insurance remains valid. But check whether your plan covers treatment at hospitals that may be overwhelmed with casualties. Confirm which hospitals in your emirate are operational and accepting non-emergency patients.

Supply Chain and Logistics

The Strait of Hormuz closure is the single largest economic impact of this conflict for businesses operating in the UAE.

The Numbers

Over 500 tankers are stalled waiting for the strait to reopen. Roughly 20 percent of the world’s oil supply transits Hormuz. Oil has hit $120+ per barrel, with projections of $200 if the closure extends beyond a few weeks. This affects every business in the UAE, not just oil companies — fuel costs, shipping costs, and utility costs will all rise.

Jebel Ali Port

Jebel Ali — the UAE’s primary commercial port and home to JAFZA — was directly targeted. Even after immediate damage is repaired, port operations will run at reduced capacity. Container processing times will increase. If your business relies on Jebel Ali for imports or exports, expect significant delays.

Alternative Routes

• Air freight is operational but expensive. Dubai airports were hit but are partially functioning. Abu Dhabi and Sharjah airports are processing cargo flights. Expect air freight costs to be 3 to 5 times normal rates.
• Overland through Oman and Saudi Arabia is the most reliable alternative for physical goods. The UAE-Saudi border crossings are open and processing commercial traffic. Lead times are longer but routes are functional.
• Digital-only businesses are least affected. If your free zone company provides services, consulting, or digital products, your supply chain risk is minimal. Your main concerns are banking and visa continuity.

Who Is Most Affected

Businesses in these categories need immediate contingency plans:

• Trading companies holding or moving physical inventory
• E-commerce businesses relying on sea freight imports
• Manufacturing dependent on raw material imports
• Food and beverage businesses importing goods
• Logistics and freight forwarding companies (obviously)

If your free zone company is a service business, consultancy, or tech company with no physical supply chain, your exposure here is low. Focus on banking and visa continuity instead.

Digital Operations: What Still Works

The good news: most of your digital infrastructure still functions. The bad news: “most” is not “all.”

Free Zone Portals

Online portals for IFZA, DMCC, RAKEZ, and most other free zones remain operational. You can submit applications, upload documents, and communicate with your authority online. Response times are slower, but the systems work.

Cloud Services

Amazon Web Services experienced outages affecting UAE-hosted services. If your business runs on AWS infrastructure in the Middle East (Bahrain) region, you have already felt this. Move critical workloads to European or US regions if you have not already. Azure and Google Cloud have been more stable but are not immune.

If your company website, CRM, or operational tools are hosted on UAE-region infrastructure, check your uptime now. Consider deploying to a multi-region setup for redundancy.

Payment Processing

Visa, Mastercard, and local payment networks (UAE Switch) are processing transactions. International transfers via SWIFT are functional, though some banks report delays of 1 to 3 business days on outbound international transfers versus the normal same-day processing.

Cryptocurrency transactions remain functional but come with enhanced compliance scrutiny. If your business accepts crypto payments, document everything meticulously — regulators will look harder at crypto flows during the conflict.

Communications

UAE telecommunications infrastructure is operational. Internet, mobile, and VoIP services are working. Some submarine cable traffic has been rerouted, which means slightly higher latency on connections routed through the Gulf, but nothing that affects normal business operations.

If You Need to Leave Temporarily

Leaving the UAE during the conflict does not mean abandoning your company. But you need to handle it correctly.

Your Visa

Your residence visa remains valid for re-entry for 6 months after departure. Some free zones allow up to 12 months with prior written approval. If you leave, confirm your re-entry window with your free zone authority in writing before you go.

If your visa expires while you are abroad and you cannot return to renew it, contact your free zone immediately. Most authorities are handling these situations with more flexibility than normal, but you need to communicate — not just disappear.

Remote Management

You can manage your free zone company from abroad:

• Licence renewals can be processed online at most zones
• Banking can be managed via online and mobile banking
• Tax filing (corporate tax, VAT) can be done through the FTA portal from anywhere
• Document signing can be handled with attested power of attorney

Appoint Someone on the Ground

If you leave, appoint a local PRO (public relations officer) or grant power of attorney to a trusted contact in the UAE. Some tasks — bank document submissions, visa-related visits, physical mail collection — still require an in-person presence. A PRO service costs AED 500 to AED 2,000 per month and is worth every dirham during a crisis.

Government Resources and Emergency Contacts

Save these now. Not in a bookmark folder you will never find — in your phone contacts.

Emergency and Information

• NCEMA (National Crisis and Emergency Management Authority): ncema.gov.ae — official situation updates, emergency instructions, shelter locations
• UAE MOFA (Ministry of Foreign Affairs): mofa.gov.ae — the UAE’s stated “self-defense” posture and diplomatic updates
• Emergency services: 999 (police), 998 (ambulance), 997 (fire)

Your Free Zone Authority

Call your free zone’s main number and ask for the emergency or business continuity contact. Most authorities have set up dedicated lines or email addresses for conflict-related queries. Get the direct line, not the general enquiry number.

Your Embassy

If you are a foreign national (which is almost every free zone company owner), locate your embassy’s emergency contact number. If your embassy has issued evacuation guidance, take it seriously. You can manage your company remotely. You cannot manage your company if you are stuck in a conflict zone without consular support.

Your Bank

Get your relationship manager’s direct mobile number. The general call centre will have hour-long wait times. A direct line to someone who knows your account is invaluable when you need an urgent transfer processed or a hold removed.

The Honest Assessment

Here is what we know and what we do not.

What We Know

• The UAE’s posture is defensive, not retaliatory. MOFA has stated a “self-defense” position. This reduces (but does not eliminate) the risk of escalation from the UAE side.
• The damage is real but contained. 4 deaths and approximately 70 injuries from 186 missiles and 812 drones. The UAE’s air defence intercepted the vast majority — 172 of 186 missiles, and most of the drones. But “contained” does not mean “over.”
• Trump has claimed a 4-week timeline to end the war. Take that with appropriate scepticism. Even if hostilities cease in 4 weeks, Hormuz reopening, insurance normalisation, and full government services resumption will take months.
• Oil at $120+ per barrel will raise costs for everyone. Your rent, utilities, shipping, and operational costs are all going up. Budget accordingly.

What Recovery Looks Like

If the conflict ends within weeks, expect:

• 1 to 2 months for visa processing to return to normal
• 2 to 3 months for shipping routes and insurance to normalise
• 3 to 6 months for the full economic impact to work through (oil prices, supply chains, construction)
• 6 to 12 months for UAE stock markets and investment sentiment to stabilise

Should You Pause or Continue Operations?

Do not close your company. Closing a free zone company costs AED 10,000 to 30,000 and takes weeks. Re-establishing later costs even more. Unless your business is fundamentally unviable without Hormuz shipping, keep the entity alive.

If revenue has stopped, you can:

• Reduce to minimum operations — keep the licence active, pause hiring, cut discretionary spend
• Negotiate with your free zone for deferred payments or reduced packages at renewal
• Maintain your bank account with minimum balance to avoid closure

The businesses that come through this strongest will be the ones that stayed operational and positioned themselves for the recovery. The UAE rebuilt after every previous crisis — 2008, 2020, 2023 — and the free zone ecosystem recovered each time. This will be harder. But the fundamentals of why people set up businesses in the UAE have not changed.

Keep your licence active. Keep your banking functional. Keep your visa current. Everything else can wait.

For the broader business impact analysis, read our companion piece: Iran-UAE War: How the Conflict Impacts Free Zones and Business Setup. If you are considering setting up after the conflict ends, see Post-Conflict UAE Free Zone Setup.