Japan's Largest Banks Evacuate Dubai Staff Amid US-Iran Tensions

On June 23, 2025, Japan’s largest banks initiated the evacuation of their employees from Dubai and other key financial centers in the Middle East. This decision was prompted by the recent US airstrikes on Iranian targets, which have heightened regional instability and raised concerns for multinational corporations operating in the Gulf region.

Several prominent Japanese banking institutions, including MUFG Bank, Sumitomo Mitsui, and Mizuho, have begun formal evacuation procedures for their key personnel stationed in Dubai and neighboring cities. These banks have significant investments in the Middle East, encompassing infrastructure projects and financing for regional sovereign funds. However, the escalating geopolitical risks have led to a reassessment of their risk-reward calculations, prompting them to prioritize the safety of their employees over maintaining a regional presence.

Internal sources indicate that the banks’ crisis committees were activated shortly after the news of the airstrikes broke. Within hours, repatriation plans and temporary relocation measures were put into action. Some employees are being flown back to Tokyo, while others are being sent to lower-risk offices in Southeast Asia and Europe. This swift response underscores the sensitivity of Japanese institutions to geopolitical volatility, given the country's post-WWII constitution and pacifist principles.

The US airstrikes on Iran were carried out in retaliation for a suspected cyberattack on American naval systems in the Gulf. Iran has responded with threats of countermeasures, including potential attacks on oil infrastructure and military installations in the UAE and Saudi Arabia. This escalating conflict has prompted not only Japan but also other multinational corporations to reassess their operations in the Middle East. Energy, logistics, and finance sectors are particularly affected, as the unpredictability of regional dynamics makes it challenging to maintain normal business continuity plans.

Security consultants have labeled Dubai’s current status as “high caution” for foreign nationals, urging companies to implement short-term exit strategies. The exit of Japan’s largest banks is not just symbolic; it sends shockwaves through the financial world. Japan is known for its long-term investment vision, and any strategic withdrawal is deliberate and data-backed. The fact that these banks are pulling staff out highlights the perceived danger of the region in the eyes of risk managers.

Dubai has long worked to position itself as a safe haven for global finance in the Middle East. However, with major firms now evacuating their employees, investors are beginning to see cracks in that narrative. Real estate, banking, and tourism sectors in the UAE may soon feel the ripple effects of declining confidence. Financial analysts are closely monitoring insurance markets, oil prices, and equity responses in Asia and Europe, as Japanese stocks tied to Gulf investments have seen minor dips, suggesting potential volatility ahead if tensions escalate further.

While the Japanese exodus is the most high-profile, it may just be the beginning. Other regional banks in Singapore and South Korea are reportedly reviewing their Gulf strategies. American and European firms, already cautious due to existing sanctions and trade complications with Iran, are likely to follow suit. The impact of Middle East risk is quickly becoming a global concern. Risk analysts predict that if conditions do not stabilize within weeks, the number of Dubai evacuations could surge significantly. Governments are also beginning to update travel advisories and issue region-specific warnings for businesses and individuals alike.