Businesses across the UAE and the wider Gulf region are increasingly relying on virtual meetings as higher travel costs, geopolitical uncertainty and pressure on corporate budgets reshape the way companies conduct business.
While business travel had largely recovered to pre-pandemic levels across the Middle East, industry executives say recent regional tensions and rising operating expenses have prompted many firms to reassess the need for face-to-face meetings.
According to business leaders, the trend extends beyond the impact of higher airfares and reflects broader concerns about employee safety and financial efficiency.
Mohammad Osama, Chief Executive Officer of GRG, said many organisations have tightened travel policies in the weeks following the regional ceasefire.
“In the last six weeks post the ceasefire, companies have allowed only essential business travel,” he said, noting that multinational corporations in particular are paying close attention to travel safety advisories.
Osama added that rising energy costs have also put pressure on corporate margins, prompting businesses to cut discretionary spending and review overhead expenses, including travel budgets.
Air travel costs have risen significantly since March 2026 following an increase in jet fuel prices linked to the US-Israel-Iran conflict and the closure of the Strait of Hormuz, a critical route for global energy shipments.
Officials have noted that the disruption has contributed to a substantial increase in transportation costs. Industry estimates suggest airfares could remain roughly 30 percent higher this year compared with 2025 due to elevated fuel prices and reduced airline capacity caused by airspace restrictions and route changes.
Executives say the shift toward digital communication also reflects changes that began during the Covid-19 pandemic and have become permanent in many sectors.
Osama estimated that between 35 percent and 55 percent of meetings that were once conducted in person have remained online since the pandemic. Although some delayed face-to-face meetings have resumed following the ceasefire, most interactions continue to take place virtually.
Aviation analyst Saj Ahmad of StrategicAero Research said concerns about travel disruptions have become a major factor in decision-making.
“Airfares may be one factor, but the shift to online meetings is driven more by firms not wanting staff stranded overseas if hostilities resume,” Ahmad said. He added that conducting business remotely allows companies to avoid risks associated with sudden travel restrictions.
Despite the growing use of virtual platforms, many organisations continue to value in-person engagement for critical discussions.
Vijay Gandhi, Regional Director for Europe, the Middle East and Africa at Korn Ferry Digital, said companies are not abandoning business travel altogether.
“Most firms continue to prioritise in-person engagement where it adds value, particularly for client-facing and strategic interactions,” Gandhi said.
Industry observers say the result is a more balanced hybrid model, where technology is used for routine communication while travel is reserved for meetings that benefit most from personal interaction. The approach reflects a business environment shaped by both the lasting effects of the pandemic and recent regional challenges.
