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Hyderabad investors worry as Gulf war hits Dubai business

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HYDERABAD: Rising tensions in the Gulf have triggered concern among investors from Telangana who have large business interests in the region. Political leaders, film personalities and real estate players from the state have invested heavily in sectors such as real estate, hospitality, gold trading and mining in cities including Dubai, Abu Dhabi, Doha and Sharjah.

War fears hit confidence in Gulf investment hubs

Recent developments linked to Iranian attacks have shaken the image of Dubai as a “safe haven” for investors. As uncertainty grows, several prominent investors from Telangana with business interests in these Gulf cities are closely watching how the situation unfolds.

Some political leaders and their relatives, along with film personalities, are believed to have made investments in the region through benami arrangements. Many among them are now waiting for clarity on how long the conflict will continue.

Telangana leaders reportedly hold major Dubai assets

Sources say several leaders from north Telangana have invested in real estate projects including luxury flats and villas, as well as hotels and gold trading businesses in Dubai. There is also strong speculation that two influential leaders from a district in south Telangana own hotel, real estate, information technology and mining businesses in Dubai.

Indian investments dominate Dubai real estate market

Dubai’s real estate sector recorded transactions worth $249 billion in 2025, according to reports. Nearly 30% of these investments came from Indians. Political leaders, film personalities and real estate developers from Telugu states are believed to be among the major investors.

Luxury villas, apartments and off-plan projects have been key drivers of the Dubai real estate boom. However, the current tensions have pushed investors into a “wait-and-watch” mode.

“Decision-making has stopped. One client has backed out of a deal. Many others are asking to delay agreements. Site visits have fallen. Transactions may drop by 30–40%,” a broker dealing with Telugu investors in Dubai told reporters over phone.

The hospitality and tourism sector may face a sharper impact. International flight cancellations have reduced arrivals, leading to a steep fall in occupancy rates at star hotels.

While mining and gold trading businesses may face limited direct damage, insurance costs are rising sharply and contracts are being renegotiated. The developments have heightened anxiety among Telugu investors with stakes in Gulf businesses.

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