Iran Attacks Dubai with Missiles and Drones as UAE Intercepts Most Strikes
Iran stepped up its regional strike campaign with missiles and drones directed at Gulf states, focusing attention on the United Arab Emirates and its emirate of Dubai. Local authorities reported smoke rising over Dubai’s Jebel Ali Port as the attacks continued on March 1, amid a broader escalation between the United States and Iran.
Dubai has long been known as a global hub for tourism and finance, attracting millions of visitors and sustaining a tourism sector that the government says contributes about $30 billion a year. The city’s appeal rests on luxury hotels, a tax regime favorable to international investors, and its role as a gateway to regional markets for Western firms.
UAE officials said roughly 1,700 missiles and drones were launched by Iran, with more than 90 percent intercepted by UAE air defenses. Despite those interceptions, several key facilities were struck, including military bases and airports, underscoring the vulnerability of critical infrastructure in the region during an extended conflict.
Damage extended to iconic hard and soft infrastructure, including the Palm Jumeirah’s Fairmont The Palm hotel and at least one data center, with reports of a temporary disruption to Dubai residents’ mobile networks. On the ground, aviation and security operations were disrupted as authorities responded to the attacks.
Financial institutions with a presence in Dubai responded to the security situation by evacuating staff. Citibank and Standard Chartered reportedly pulled Dubai-based employees from the city for safety reasons on March 11, highlighting the immediate risk to cross-border banking operations tied to the UAE’s status as a regional financial center.
The violence also had a human dimension. Foreign workers—among them large communities from India, Nepal, Pakistan and Bangladesh—made up a sizeable portion of Dubai’s population, and the conflict has accelerated departures and raised concerns about living conditions for expatriates. Four people were reported dead in the UAE, with three of the deceased identified as foreign workers from Pakistan, Nepal and Bangladesh. In addition, drone strikes near Dubai International Airport injured two Ghanaians, one Indian and one Bangladeshi.
Officials warned that social-media content could inflame fear, and Dubai police signaled they could detain influencers who disseminate material likely to heighten public panic. A professor at Zayed University cautioned that while the UAE economy has absorbed losses to date, a war lasting another 10 to 20 days could deal a severe blow to tourism, aviation, foreign firms and the oil sector.
Why this matters for the United States: Dubai functions as a major hub for international business, finance, travel, and technology development in the Middle East. Prolonged conflict in the Gulf threatens energy markets and supply chains, raises insurance and operating costs for multinational firms, and could affect American companies with regional exposure. The episode also tests security and defense alignments between the United States and its Gulf partners, with potential implications for regional stability, defense cooperation, and the global market's risk appetite.