Iran Fires 1,700 Missiles and Drones at UAE, Dubai Airport Hit, 6 Killed as Real Estate Market Loses $270 Billion

The glittering skyline of Dubai, known for its record-breaking skyscrapers and reputation as one of the world’s safest global cities, is now facing an unprecedented security crisis as missiles and drones launched by Iran strike key locations across the emirate.

The attacks come amid the escalating West Asia conflict that began on February 28, 2026, when the United States and Israel launched military operations against Iran. Seventeen days into the conflict, the United Arab Emirates has emerged as one of the primary targets of Iranian retaliation.

Reports cited by CNN indicate that more than 1,700 missiles and drones have been launched toward the UAE since the escalation began.

Drone Attack Sparks Fire at Dubai Airport

One of the most alarming incidents occurred near Dubai International Airport (DXB), where a drone strike ignited a fuel tank, sending massive plumes of smoke into the sky.

According to the Dubai Media Office, this marks the third major drone-related incident at the airport since late February, highlighting the growing security risks for one of the world’s busiest aviation hubs.

Despite the attacks, the UAE’s advanced air defence systems—supported by American military technology—have intercepted over 90 percent of incoming threats.

Casualties and Infrastructure Damage Rising

The ongoing strikes have begun to take a toll on both infrastructure and civilians.

Authorities confirmed that six people have been killed and 141 others injured across the emirate since the escalation began.

Among the high-profile targets reportedly hit was an Amazon Web Services data centre, triggering temporary banking disruptions. The aviation fuel supply system at Dubai International Airport was also affected.

Officials described the escalation as a “vertical escalation”, with attacks progressing from digital infrastructure to physical facilities and eventually critical energy supplies.

The social impact is also visible. Several institutions have shut down temporarily, including five schools and the Iranian Hospital, while authorities have charged 21 individuals for filming missile strikes, citing national security concerns.

Why Iran Is Targeting the UAE

Analysts say Iran’s focus on the UAE is driven by both geography and strategic signalling.

The UAE lies only about 100 kilometres across the Persian Gulf from Iran, making it geographically easier to target compared with Israel’s heavily layered defence network.

According to international relations expert Fawaz Gerges, the proximity makes Emirati cities far more vulnerable to rapid aerial strikes.

Strategically, Iran also sees Dubai as a symbol of globalisation and Western economic influence. The Islamic Revolutionary Guard Corps has stated that around 60 percent of its firepower is being directed at US-linked strategic interests in neighbouring Arab countries.

Iranian state media has also labelled American technology facilities and economic centres in the UAE as legitimate targets due to the country’s alliance with Washington.

Dubai Economy Faces Major Shock

The conflict has triggered a sharp economic reaction in Dubai’s markets.

According to market data, the DFM Real Estate Index plunged nearly 30 percent in just 17 days, falling from 16,140 points to around 11,516.

The crash reportedly wiped out $250–270 billion in developer market value, erasing most of the gains seen earlier in 2026.

Tourism, one of Dubai’s biggest industries, is also facing heavy losses estimated at around $600 million per day.

However, transaction data shows the real estate market still functioning. More than 3,500 property deals worth Dh11.93 billion were recorded in early March even as missile interceptions continued.

Analysts say the current slump appears to be driven more by fear than financial weakness, unlike the debt-driven crisis during the 2008 global financial meltdown.

US Alliance: Protection and Risk

The UAE’s close military partnership with the United States plays a central role in the crisis.

Last year, Washington designated the UAE as a “major defence partner”, strengthening military cooperation and deploying advanced fighter jets and air defence systems in the region.

However, that same alliance has also made the country a target for Iranian retaliation.

Iran’s strategy appears to signal that countries hosting US military assets and serving as global financial hubs cannot remain insulated from regional conflicts.

One key installation in this security equation is Al Dhafra Air Base, which provides critical protection but also attracts attention from adversaries.

Can Dubai Maintain Its Global Hub Status?

Despite the ongoing conflict, authorities say daily life in Dubai continues with supermarkets stocked and port operations gradually stabilising.

However, the crisis has forced multinational corporations to reassess risk levels. Insurance firms are now reportedly offering political-risk coverage normally reserved for unstable regions.

UAE President Mohamed bin Zayed Al Nahyan has responded with a strong warning to adversaries, stating that the country should not be underestimated.

Whether Dubai can restore its image as the world’s safest global business hub remains uncertain. While the skyscrapers still stand and financial markets continue operating, the recent attacks have shown that even a city built on the promise of security is not immune to the realities of regional conflict.