Iran’s retaliation for the U.S.-Israeli bombing campaign has focused on its neighbors in the Persian Gulf, threatening their status as destinations for financial magnates, billionaires and wealthy tourists.
The region’s success over the years in attracting capital from around the world and diversifying its oil could also pose a threat to its global markets.
“I moved to Qatar to avoid taxes, now I’m hiding from missiles,” quipped one financial sector worker on X, who had been recording Iranian airstrikes from his balcony.
While U.S. military bases in the region have also been targeted, analysts say Iran’s strategy is to inflict pain on U.S. allies in the Middle East, including the United Arab Emirates, in the hope that they will pressure President Donald Trump to end combat operations.
Until then, however, social media is awash with images of Iran continuing to launch missiles and drones into posh hotspots.
An airstrike sparked a fire at Dubai’s Fairmont Palm hotel and spread panic on the famed artificial island of Palm Jumeirah, where many of the island’s wealthiest residents live.
Smoke also appeared near the Burj Khalifa, the world’s tallest building, after a drone appeared to be intercepted and exploded. In nearby Abu Dhabi, debris from another drone hit the Etihad Towers. Kuwait City International Airport was also targeted by drones.
Meanwhile, DP World suspended operations at Jebel Ali Port, the Middle East’s largest container port and a key component of Dubai’s economy, after intercepted missile fragments caused a berth fire.
The port and adjacent free trade zone account for 36% of Dubai’s GDP, and hundreds of ships have been frozen near the Strait of Hormuz amid fears Iran will close the vital chokepoint.
On top of that, attacks from Iran have closed the airspace around the Gulf, which has become a major global aviation hub and a major driver of the region’s economy.
“What’s happening in the UAE could be catastrophic unless they pressure Trump [to] “Either defeat Iran quickly and decisively, or give up on (tacos) immediately,” Marko Kolanovic, former chief strategist at J.P. Morgan, warned on
He noted that Dubai suffered a real estate crisis in 2009 and 2010 that was largely confined to the city but still had an impact on global financial markets.
