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I'm sure there are businesses in the UAE, but wondering, why would one keep instances/data on a zone at risk since well over a year now.

Genuinely curious. Aside for high frequency trading where latency is so vital.

The next closest region is Tel-Aviv, I guess it's pretty obvious they won't put their workload here.

And after that it's Mumbai, 2500km away. That will easily double your latency, which is someone that you can feel in usage.

Why wouldn’t they - Israel and UAE have good relations

Israel starts new war every month, you can understand that it is risky to put your data in a data center that could be the target as well.