Published by Global Banking & Finance Review®
Posted on March 1, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleLoud blasts were heard for a second straight day over Dubai and Doha amid Iran’s escalating retaliatory strikes targeting U.S. and Israeli positions — drone and missile debris sparked fires, damaging key Dubai landmarks and a port, while Qatar contained a fire in its industrial zone without casualti
By Maha El Dahan and Andrew Mills
DUBAI, March 1 (Reuters) - Debris from an intercepted drone damaged an Abu Dhabi complex housing the Israeli embassy and several other international missions, causing minor injuries to a woman and her child, Abu Dhabi's state media office said on Sunday.
Debris from the drone fell against the facade of the Etihad Towers complex after an interception that caused loud sounds heard across the emirate, the media office said.
After the U.S. and Israel launched strikes on Iran on Saturday, Iran said it would target U.S. bases in the region. But it has also hit a range of civilian and commercial areas across Gulf cities, widening the conflict’s impact on key regional aviation and trade hubs.
As retaliatory strikes widened on Sunday they reverberated across Gulf Arab states, with loud blasts heard in Dubai and the Qatari capital Doha and with Oman being hit for the first time.
PORTS TARGETED
In Dubai, two people were injured after shrapnel from drones fell over two houses when they were intercepted, a Dubai state media office statement said.
Dubai's international airport, its landmark Burj Al Arab hotel and man-made Palm Jumeirah Island all suffered damage overnight, as did Abu Dhabi's international airport.
Thick black plumes of smoke continued to rise from the Jebel Ali port area, where one of the berths caught fire on Sunday because of debris from an intercepted missile.
State-owned logistics firm DP World has temporarily paused operations at Jebel Ali Port, according to a notice seen by Reuters.
The operator said the move was taken as a precaution following the recent regional developments and following the direction of relevant government authorities.
The operator's Jebel Ali Port and adjacent free trade zone account for 36% of Dubai's gross domestic product. The company says it handles around 10% of global container traffic with operations spanning countries including Angola, Britain, Canada, India and Peru.
Dubai Media Office and DP World did not immediately reply to requests for comment.
Large plumes of smoke were also seen rising at Abu Dhabi's Zayed Port area, according to a Reuters witness.
In neighbouring Oman, which was spared retaliation on Saturday, Duqm commercial port was targeted by two drones, wounding one worker, the state news agency said.
Dubai is the biggest tourism and trade hub in the Middle East and its airport is one of the world's busiest travel hubs.
Qatar's interior ministry said on Sunday that it was responding to a limited fire in an industrial zone after debris fell from an intercepted missile.
(Reporting by Maha El Dahan in Dubai and Andrew Mills in Doha; Additional reporting by Sarah El Safty in DubaiEditing by Edmund Blair, Aidan Lewis)
The blasts were caused by Iran's retaliatory strikes targeting Gulf cities, in response to U.S. and Israeli strikes on Iran.
Dubai International Airport, Burj Al Arab, and Palm Jumeirah Island suffered damage, and a fire broke out at Jebel Ali port.
Yes, two people were injured in Dubai after shrapnel from intercepted drones fell on houses.
Qatar's interior ministry reported a fire in an industrial zone from debris after an intercepted missile.
These incidents disrupt finance, trade, and travel in major Gulf hubs, impacting global markets and regional stability.
Explore more articles in the Finance category
