Israel and Iran have their spies active in the Gulf Cooperation Council (GCC) region who hold European passports and work with multinational companies in various positions, Dubai police said.
"The West is mulling attacking Iran and the attack through espionage activities has already begun. Although the majority of spies active in the region work for Israel, Iranian spies are present here too," Dubai Police chief Dahi Khalfan said.
Khalfan warned that a clash between spies from the two sides could ignite tension in the region.
Khalfan statement came after Dubai Police investigated and exposed the plot behind the assassination of a Hamas leader, Mahmoud Al Mabhouh, earlier this year who was killed on January 19 in his hotel room in Dubai.
It is widely believed an Israel's intelligence agency Mossad was responsible for his assassination and misused European passports during their mission.
In the context of Mabhouh's assassination and the alleged involvement of Mossad and its agents using fake passports of other countries, Khalfan said that underworld mafias could be destroyed but when countries are involved in organised crimes, it could pose a serious challenge to international security.
"If such crimes are repeated the membership of Israel in the UN and its various agencies should be cancelled," Al-Sharq newspaper quoted him as saying.
However, when asked how the region could possibly guard against such elements, the Dubai police chief said it was difficult since spies could come in various garbs.
"If we arrest any one of them, though, it could be a major breakthrough," he said.
Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates are member of GCC.