Iran has escalated its attacks on the United Arab Emirates (UAE), making it the hardest-hit country in the ongoing U.S.-Iran conflict outside of Israel, with significant repercussions for global markets and regional stability [1]. The UAE has intercepted over 90% of incoming missile and drone threats, according to official tallies from its Ministry of Defense. As of March 12, the 13th day of the war, the UAE reported intercepting 268 ballistic missiles, 15 cruise missiles, and 1,514 drones, resulting in six fatalities and 131 injuries [1]. The volume of firepower directed at the Emirates is notably higher than that faced by its Gulf neighbors, with only Israel experiencing more attacks in the past two weeks [1].
Iran's strikes have disrupted daily life across the Emirates, with residents in Dubai and Abu Dhabi frequently hearing explosions and missile alarms at all hours. Key infrastructure, including airports, residential buildings, hotels, Dubai's International Financial Center, Jebel Ali Port, and the U.S. consulate in Dubai, have all been targeted. Notably, an Amazon data center was attacked, causing disruptions to cloud services and raising questions about the region's attractiveness for Big Tech investments [1].
Despite Iranian claims that attacks on Gulf neighbors are limited to U.S. bases, the strikes have impacted a wide range of civilian and commercial targets. The UAE's strategic importance as a bridge between East and West, and its role in finance, logistics, aviation, and technology, make it a prime target for Iran's efforts to pressure Washington, disrupt global energy flows, and unsettle international finance and corporates [1].
The UAE's deepening alliance with the U.S., highlighted by its designation as a major defense partner in 2024 and President Donald Trump's visit in May 2025, underscores its pivotal role in regional security and technological investment. On March 7, the Al Dhafra Air Base was specifically targeted by Iranian drone and missile strikes [1].
CONCLUSION
Iran's unprecedented attacks on the UAE have caused significant disruption to technology, energy, and financial sectors, with global markets feeling the impact. The UAE's strong defense capabilities and strategic alliance with the U.S. are being tested as the conflict intensifies. Market participants should closely monitor developments, as continued instability could further affect international investment and regional operations.