UAE strongly denies 'fake news' claims of laws blocking foreign investors from withdrawing funds

DUBAI – The United Arab Emirates has firmly dismissed circulating reports alleging that new laws have been introduced to prevent foreign investors from withdrawing their capital or leaving Dubai, labeling the claims as baseless "fake news."

In an official statement posted on X (formerly Twitter) late Wednesday, the Dubai Media Office directly addressed and refuted the rumours.

"Denying false reports. Fake News. The UAE introduces strict laws to prevent foreign investors from withdrawing their capital and leaving Dubai,” said the post.

“These measures reportedly include freezing bank accounts and imposing restrictions on money transfers and capital movement,” it added.

“Fact: The UAE’s economy is strong, and Dubai will continue to remain a global economic hub,” it concluded.

The rumours appear to have originated and spread rapidly on social media platforms amid the ongoing US-Israeli war against Iran, now in its third week.

The conflict has led to Iranian missile and drone strikes on several Gulf states, including the UAE, causing damage to infrastructure, civilian casualties in some cases, and heightened regional uncertainty. This has fueled speculation about economic fallout, including fears of capital flight from Dubai—a major global financial and real estate hub heavily reliant on foreign investment and expatriate residents.

Some unverified posts claimed that banks were informally limiting outbound transfers (e.g., to $100,000) to curb outflows, or that stricter controls were being imposed to prevent investors from "fleeing." Other narratives suggested Dubai's status as a safe haven for wealth was collapsing due to the war, with predictions of massive capital exodus and a permanent decline in the emirate's appeal.

The Dubai Media Office's clarification aligns with parallel statements from the UAE Ministry of Economy and Tourism, which also denied any restrictions on capital movement.

The ministry stressed the country's commitment to economic openness, the free flow of funds in line with international standards, and a stable, attractive investment environment. It urged the public and media to rely solely on official sources for accurate information.

Dubai has long positioned itself as a pro-business destination with no personal income tax, robust legal protections for investors, and streamlined processes for repatriating capital—features that have attracted trillions in foreign direct investment and made it home to millions of expatriates. Authorities emphasized that these fundamentals remain unchanged despite the regional tensions.

The swift official response underscores efforts to combat misinformation during a period of heightened geopolitical stress, when rumours can exacerbate market volatility or deter business confidence. Financial markets in the UAE, including Nasdaq Dubai, have shown resilience, with trading resuming normally after brief interruptions earlier in the conflict.

Dubai remains committed to welcoming and protecting foreign capital, even in turbulent times. Investors and observers are advised to verify information through official channels to avoid falling for unconfirmed claims.