A high-rise building in Dubai was damaged overnight in a drone attack, marking another escalation in Iran's retaliatory strikes that have brought conflict to the heart of the Gulf's commercial hub, according to Al Jazeera.
Video footage shows visible damage to the Dubai Creek Harbour building following the overnight strike. The attack adds to a pattern of Iranian drone strikes across Dubai since the conflict began February 28, with previous incidents hitting areas near Dubai International Airport, the Marina neighborhood, and Palm Jumeirah. As of March 10, six people had been killed and 122 injured across the UAE from Iranian strikes, according to the UAE Defence Ministry.
The escalating strikes threaten to disrupt the UAE's role as a critical gateway for Horn of Africa trade and investment. Dubai serves as a major commercial hub for Ethiopian and Horn of Africa trade, with the UAE having committed $2.3 billion in financial support, renewable energy, and infrastructure projects to Ethiopia, according to the Africa Center for Strategic Studies. Jebel Ali Port, which accounts for 33% of Dubai's GDP, handles transshipment for the broader region including Horn trade flows.
The UAE has significantly expanded its Horn of Africa engagement in recent years, according to multiple policy analyses. The Emirates established a military base in Eritrea's Assab port in 2015 and maintains facilities in Somaliland through DP World's port concession, according to the SWP Berlin policy brief. The UAE provided $3 billion in aid and investment to Ethiopian Prime Minister Abiy Ahmed after he took office in 2018 and signed 17 bilateral agreements in 2023 covering finance, technology, and agriculture.
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Regional shipping routes face mounting pressure as the conflict escalates. Houthis announced on February 28 they would resume attacks on commercial ships in the Red Sea, threatening the Bab el-Mandeb strait chokepoint. While Ethiopia routes approximately 90% of its trade through Djibouti, according to the Africa Center for Strategic Studies, the UAE's commercial ties and DP World's development of Berbera port as an alternative route make Dubai's stability significant for Horn trade diversification. Ethiopia's foreign currency shortages, ongoing since the birr float in July 2024, make any trade disruption costly.
The attacks come as Gulf states compete for influence along the Red Sea corridor, where Ethiopia's January 1, 2024 memorandum of understanding with Somaliland has created new diplomatic tensions. The deal, which grants Ethiopia naval access in exchange for recognizing Somaliland independence, has divided the region into competing coalitions, with the UAE and Ethiopia aligned against Somalia, Egypt, and Eritrea, according to the SWP Berlin analysis.
The drone strikes are part of Iran's broader retaliatory campaign against Gulf states since February 28, with Iranian forces launching 1,475 drones across the region as of March 10, according to available data. Dubai authorities confirmed multiple incidents on March 12 alone, including strikes at Al Bada'a, Sheikh Zayed Road, and the Creek Harbour building, though no injuries were reported in the overnight attack.
