Hedge Funds, Banks Forced Into Contingency Mode in the UAE

As missiles and drones flew over the United Arab Emirates, traders and Wall Street executives who have flocked to the Gulf in recent years found themselves confronting a threat few expected to materialize in a country that had pitched itself as the region’s safest hub.

Several hedge funds began reviewing business-continuity arrangements immediately, according to people familiar with the matter. Banks including Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc., Commerzbank AG and Nomura Holdings Inc. instructed employees to work from home, while others urged staff to shelter in place and avoid sensitive areas around embassies and military installations. Meanwhile, many firms rushed to size up their regional exposure.