At MIPIM, the war in the Middle East is disrupting representatives of Gulf real estate.

In one of the two booths of Invest Saudi, the Saudi Arabian investment promotion agency, there is a giant model of the city of Diriyah, on the outskirts of Riyadh, and its $63 billion real estate project. Next door, a dimly lit room presents New Murabba, a new district of the Saudi capital, through videos projected onto the walls.

In addition to its projects, the country is touting its new regulations regarding foreign investment and is seeking "long-term partners." But launching an investment venture is difficult while missiles have been striking several Gulf countries for the past twelve days.

"Business as usual" is all that's being said by Saudi Invest, without ever uttering the word "war." The King Salman Park Foundation, which occupies a neighboring stand, declined to comment on the conflict. The stand was sparsely populated Tuesday morning at the opening of the MIPIM trade fair.

"We meet with investors every day, it hasn't really slowed down," a representative of a Saudi real estate project ventured to tell AFP, without agreeing to be quoted.

The delegation's journey from Riyadh was nonetheless long, complicated, and at several points uncertain. Representatives from Abu Dhabi, arriving from the United Arab Emirates, cancelled their trip, and several real estate consulting firms were unable to bring their Dubai-based employees.

No one from Qatar is expected at the country's stand, which is hosting representatives from Lyon.

"There have been a few sporadic cancellations, mainly from people stranded in Dubai," confirms Nicolas Boffi, director of MIPIM. Dubai and Abu Dhabi airports are partially operational but had to suspend air traffic at times.

"Stability jeopardized"

Real estate is central to the diversification strategy of several Gulf countries' economies, which are heavily reliant on oil. However, local investments from sovereign wealth funds and wealthy local families remain dominant compared to foreign investment.

"Few international investors dare to go there at this stage, it is a market that lacks transparency," an executive at a German real estate investment company told AFP, without wanting his name to appear.

As for the neighboring Sultanate of Oman, "there is no war in Oman, therefore no impact" on business, according to Jamal Al Hadi, the media advisor to the Minister of Housing, who traveled there to promote several major urban projects. Only a few Omani oil installations were affected at the beginning of the war.

Dubai-based real estate companies have seen their stock prices plummet, "as security and stability are jeopardized by the repercussions of the war with Iran," notes Swissquote Bank financial analyst Ipek Ozkardeskaya.

She believes that "greater losses are possible depending on the intensity and duration of the tensions, and depending on the overall impact on security in Dubai and possible departures of expatriates".

The first consequence of the conflict, "disruptions to oil and gas exports as well as tourism" could in turn "weigh on local asset prices, particularly real estate", Moody's financial analysts said in a note.