Susan MeierUpdated: 1 March 2026
What happened on 28 February startled many people - ourselves included. Following strikes by the US and Israel, Iran retaliated with attacks targeting Dubai and the United Arab Emirates. Missiles were also fired towards Cyprus.
We are a Malta-based law firm. We aren't security experts, and we won't pretend to offer a geopolitical analysis. What we can do, however, is lay out the facts and explain exactly what this means for international expats and entrepreneurs - and what it doesn't.
The Facts on the Ground
Dubai and the UAE: According to its own reports, Iran launched over 700 projectiles at the United Arab Emirates, including rockets, drones, and cruise missiles. While most were intercepted, a fire broke out at the Burj Al Arab, both Dubai airports were temporarily closed, three people lost their lives, and 58 were injured. The Strait of Hormuz - a vital artery handling around 20 percent of global oil trade - is currently closed.
Cyprus: Two Iranian missiles were fired towards the island. Both were intercepted, and no damage was reported. The Cypriot government insists there was no direct threat. However, UK Defence Secretary John Healey has spoken of "increasingly indiscriminate Iranian retaliatory attacks" and warned that British military bases on the island could become potential targets.
What This Means for Expats in Dubai
Thousands of international entrepreneurs live and work in Dubai. Naturally, the city's appeal has taken a hit. That isn't a judgment - but it does raise some pressing questions.
When both of a city's airports close - even temporarily - it is a major disruption. For business owners who operate globally and rely on dependable flight connections, this is far more than a minor inconvenience. The closure of the Strait of Hormuz affects not only the oil trade but also standard imports and exports. Furthermore, experience tells us that geopolitical tensions inevitably lead to insurers hiking their premiums and banks reassessing their risk profiles for the region.
Dubai has proven its resilience in the past. But the assumption that the Gulf region is somehow insulated from these conflicts has been shattered.
What About Cyprus?
The situation in Cyprus is different. The missiles were intercepted, and there were no casualties or property damage. The Cypriot government has firmly denied any ongoing threat.
At the same time, Cyprus sits roughly 200 kilometres off the Syrian coast. The British military bases at Akrotiri and Dhekelia cover about three percent of the island's landmass. The UK actively uses these bases to intercept Iranian drones and missiles in the Middle East - a fact that could make them prime targets if the situation escalates further. This is not a new risk, but one that was previously more theoretical.
Is Malta Affected?
No. Malta has not been impacted by recent events, and there are several fundamental reasons for this.
Constitutional Neutrality: Malta has been a constitutionally neutral state since 1987. Article 1(3) of the Maltese Constitution explicitly states that Malta "pursues a policy of non-alignment and refuses to participate in any military alliance." This isn't just a political statement of intent - it is binding constitutional law.
Not a NATO Member: Malta is not part of any military alliance. While the island participates in NATO's "Partnership for Peace" programme, it is not a full member and has no mutual defence obligations. In the event of a regional conflict, there is no treaty that could drag Malta into the fray.
No Foreign Military Bases: The last foreign military presence in Malta - the British Royal Navy - left the island in 1979. Since then, there have been no foreign armed forces on Maltese soil. By contrast, the UK operates two active military bases in Cyprus, which are currently playing an operational role in the Iran conflict.
Geographical Location: Malta is situated in the central Mediterranean, just south of Sicily. It is roughly 1,600 kilometres from Cyprus and over 3,000 kilometres from Iran. This places the island well out of reach of the current hostilities.
No Strategic Targets: Since gaining independence in 1964, there has not been a single military attack on Maltese territory. Malta has no strategic military targets, no foreign bases, and absolutely no reason to be drawn into regional conflicts.
Our Advice
Stay vigilant and keep a close eye on how things develop. If you are already thinking about relocating - whether you're just starting to plan your move or are currently living in Dubai or Cyprus - you need to factor geopolitical stability into your decision.
Until now, security hasn't been a primary concern for most expats. That may have just changed.
Got questions about Malta? We have been advising international clients since 2013 and know the island inside out. If you want to find out how Malta stacks up against other jurisdictions - not just in terms of tax, but also safety and quality of life - let's talk.
