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Iranian Missile Strikes Damage Dubai’s Iconic Hotels

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A picture taken on January 24, 2022 shows Abu Dhabi, capital of the UAE which has come again under attack by Yemen's Huthi rebels

Iranian ballistic missiles and drones struck several high-profile sites in Dubai on February 28, 2026, damaging the landmark Burj Al Arab hotel, the Fairmont The Palm hotel on Palm Jumeirah, Dubai International Airport and other locations, as Tehran unleashed widespread retaliation following joint U.S.-Israeli airstrikes on Iran.

Dubai Hotel Attacked: Iranian Missile Strikes Damage Dubai's Iconic Hotels
Dubai Hotel Attacked: Iranian Missile Strikes Damage Dubai’s Iconic Hotels

The attacks marked an unprecedented escalation, spreading the conflict beyond military targets to civilian and economic hubs in the United Arab Emirates, one of the Gulf’s most stable and tourism-dependent economies. UAE authorities confirmed minor structural damage at Dubai International Airport (DXB), the world’s busiest for international passengers, with four people injured in a concourse incident quickly contained. A drone interception caused debris to spark a minor fire on the Burj Al Arab’s outer facade, the sail-shaped ultra-luxury hotel often called the world’s only “seven-star” property.

Social media videos verified by CNN, Reuters and other outlets showed thick black smoke rising from the Fairmont The Palm on the man-made Palm Jumeirah island after a missile or drone struck nearby, with explosions rattling the luxury resort area. Residents reported panic as flares lit the night sky and fires broke out near hotel entrances. Dubai’s media office confirmed a fire in the Palm Jumeirah zone injured four people, while Jebel Ali seaport also sustained damage.

The UAE Ministry of Defense stated Iran fired 137 missiles and 209 drones at the country, most intercepted by air defenses with high efficiency. Falling debris from interceptions caused the reported incidents, including the Burj Al Arab fire and airport damage. No fatalities were confirmed at the Dubai sites, though one person died earlier in Abu Dhabi from debris.

The strikes extended to other Gulf states hosting U.S. assets: Bahrain reported hits near the U.S. Fifth Fleet headquarters in Manama, Qatar intercepted projectiles over Doha, and explosions were heard in Kuwait and near Riyadh in Saudi Arabia. Jordan also faced incoming threats.

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Iran’s Islamic Revolutionary Guard Corps claimed the attacks targeted U.S. military installations across the region in response to “Operation Epic Fury,” the U.S.-Israeli campaign that began early February 28 with massive airstrikes on Iranian leadership compounds, IRGC bases and nuclear sites. President Donald Trump announced the operation, claiming Supreme Leader Ayatollah Ali Khamenei was killed — a claim Iranian state media denied, insisting he remained “commanding the field.”

Tehran condemned the initial U.S.-Israeli aggression as a “barbaric violation” of sovereignty and vowed continued retaliation. The IRGC described the Gulf strikes as proportionate responses to attacks on Iranian soil.

Dubai authorities suspended all flights at Dubai International and Al Maktoum airports until further notice, urging travelers to avoid the emirate. Major carriers including Emirates, flydubai, British Airways and IndiGo canceled or diverted Middle East routes. Jebel Ali seaport, one of the world’s busiest, reported operational disruptions.

Oil prices surged more than 15% on fears of prolonged conflict disrupting flows through the Strait of Hormuz, through which roughly 20% of global seaborne crude passes. Global equities opened lower, while safe-haven assets like gold rallied.

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The UAE’s foreign ministry condemned the attacks as “cowardly” and a “dangerous escalation,” reserving the right to respond. Saudi Arabia echoed the condemnation, denouncing violations against multiple Gulf nations and calling for international action.

The UAE-Saudi leadership held urgent talks, with Crown Prince Mohammed bin Salman expressing solidarity and offering support. Both urged restraint and diplomatic solutions to avert wider war.

Humanitarian concerns rose as strikes hit civilian-adjacent areas. Amnesty International called for protections, while the International Committee of the Red Cross prepared for potential casualties. Thousands of tourists and expatriates in Dubai sheltered in place amid air raid alerts and explosions.

The attacks underscore the conflict’s rapid regional spread, drawing in Gulf monarchies despite their efforts to remain neutral in U.S.-Iran tensions. Dubai’s role as a global financial and tourism hub makes it a high-value target, with damage to icons like Burj Al Arab and the airport threatening economic fallout.

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As sirens persisted and defenses remained active, the UAE emphasized stability and coordination with allies. The coming days will test whether diplomacy can contain the crisis or if further retaliation deepens the chaos.

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VanEck is a global asset management firm offering ETFs, mutual funds, private funds, model portfolios, institutional strategies, separately managed accounts, as well as UCITS funds. Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission. VanEck has a long history of looking beyond financial markets to spot trends that create meaningful investment opportunities. We were one of the first U.S. asset managers to give investors access to international markets, which set the tone for identifying asset classes and themes such as gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 that later helped shape the investment industry. The firm oversees $161.7 billion in assets as of September 30, 2025. Disclosures: http://ow.ly/SZ9450N5qTJ.

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