Japanese financial institutions are re-evaluating their operational footprint in the Middle East, while JPMorgan Chase has imposed strict travel limitations for its employees in the region, following a sharp escalation in geopolitical tensions involving Iran.
The United States formally entered the conflict over the weekend, launching strikes on three critical Iranian nuclear facilities, in a strategic alignment with Israel’s military objectives to neutralise Tehran’s nuclear capabilities. In retaliation, Iran has pledged a forceful response.
Tensions reached new heights on Monday as Israeli forces targeted Evin prison in northern Tehran—widely seen as a powerful symbol of Iran’s regime. Israeli officials described it as the most intense bombing of the Iranian capital to date.
The unfolding conflict threatens to undermine years of economic diversification efforts across the Gulf. Governments in the Middle East, including Saudi Arabia and the United Arab Emirates, have aggressively promoted themselves as regional financial centres, offering regulatory reforms and incentives to global banks and asset managers as part of long-term strategies to reduce dependence on hydrocarbons.
In response to the deteriorating security landscape, Sumitomo Mitsui Financial Group has initiated the evacuation of staff from countries including Iran and Qatar, citing safety concerns.
Mitsubishi UFJ Financial Group has also begun relocating family members of employees from Dubai and Riyadh, and is reviewing the option of discretionary staff withdrawals, according to a company spokesperson.
Mizuho Financial Group is assessing a range of contingency measures, including the potential evacuation of personnel, while urging employees to exercise heightened caution.
Wall Street banking giant JPMorgan Chase has restricted travel to and from the Middle East to essential trips only. According to a source familiar with the matter, the bank is offering case-by-case support to staff affected by the restrictions.
Goldman Sachs, meanwhile, requested that employees in Israel begin working remotely as early as last week, in light of growing instability in the region.
Bank of Singapore, a major Asian private lender, has suspended all non-essential travel for staff based at its Dubai International Financial Centre (DIFC) office. “The safety of our staff is our highest priority, and we stand ready to activate our business continuity plans while minimising the disruptions to clients,” said Ang Wee Khoon, Head of Risk Management at the DIFC branch.
The decisions underscore how the rising conflict is prompting swift risk mitigation actions from global financial players with a significant presence in the Middle East.
-Reuters
