Dr Anwar Gargash, diplomatic adviser to President Sheikh Mohamed, has stressed the importance of finding a political solution to heightened US-Iran tension as the region "cannot afford more confrontation".
He described the situation in the Middle East as "concerning, but unsurprising" and said the UAE had seen the warning signs of renewed conflict between Washington and Tehran.
Despite uneasy relations with Iran over the years, Dr Gargash said it was still "a neighbouring country".
"We need to look for political solutions because we live in the same region," said Dr Gargash at the Emirati-Kuwaiti Media Forum in Dubai. "It's important to preserve stability and find diplomatic solutions to avoid confrontation," which the region "cannot afford" more of, he added.
Dr Gargash said: "Gulf states pay part of the price for these confrontations, whether it's an impact on our reputation, stability, or on the financial side."
He also reiterated that the UAE and other Gulf states would not allow their airspace or territory to be used to attack Iran.
The Ministry of Foreign Affairs said this week that dialogue and de-escalation were “the most effective foundations for addressing current crises, underscoring the UAE’s approach of resolving disputes through diplomatic means”.
"At the same time, Iran also should not threaten Gulf countries. It should be a mutual understanding as part of our agreement," said Dr Gargash.
Tension between the US and Iran are at a high, with increasing fears of conflict as officials on both sides trade belligerent remarks.
Iran will treat any American attack as the "start of war", and Tehran will respond by striking the "heart of Tel Aviv", one senior adviser to supreme leader Ayatollah Ali Khamenei has warned. This comes as US President Donald Trump said Iran would face a "far worse" attack than last year's strikes unless it begins talks over its nuclear programme.
The USS Abraham Lincoln carrier strike group, consisting of several warships and the aircraft carrier, arrived in the Middle East this week. This means the US now has major firepower within striking range of Iran.
The US leader had also previously threatened to "hit Iran very hard" in response to the regime's deadly crackdown on nationwide protests. Tehran-backed militias in Yemen, Lebanon and Iraq have said they could retaliate if Iran is attacked again.
Meanwhile, Gulf states have stepped up diplomacy and mediation efforts in an attempt to de-escalate. Iran has held calls with the UAE, Saudi Arabia, Qatar and Oman, all members of the Gulf Co-operation Council (GCC).
The GCC remains a critical framework in the region, but should not be "burdened beyond its capacity", said Dr Gargash.
He said "diversity in viewpoints and perspectives was normal; what's not normal is indecency in adversity".
The senior UAE official also commended the council's achievements, including economic successes, shared markets, easier movement and employment, and in providing a platform for Gulf solidarity in "difficult times".
"That is the greatest achievement," he added.
