Photo Credit: X/@Reuters
Dubai, UAE — March 2026 — The UAE has shut its stock markets for two days amid a series of attacks on Dubai and Abu Dhabi, following Iran’s retaliatory strikes against US targets in the Gulf.
The escalation comes after a joint US-Israeli operation in Iran resulted in the death of Supreme Leader Ali Khamenei on February 28th.
The UAE Capital Markets Authority announced that the Abu Dhabi Securities Exchange and Dubai Financial Market will remain closed on March 2 and March 3.
“The Authority will continue to monitor developments in the region and assess the situation on an ongoing basis, taking any further measures as necessary,” it said in a statement.
The UAE had closed its embassy in Tehran and withdrew its ambassador and all members the diplomatic mission. The Ministry of Foreign Affairs said the decision “reflects the UAE’s firm and unwavering stance against any aggression that threatens its security and sovereignty.”
During the weekend, Abu Dhabi’s Zayed International Airport was targeted by an Iranian drone, which was intercepted by UAE air defence forces. However, falling debris from the downed drone resulted in the death of an Asian national and left seven others injured, according to an official statement from Abu Dhabi Airports.
Authorities have urged the public to refrain from spreading rumours and to rely solely on official updates.
Meanwhile, Dubai Airports confirmed that a concourse at Dubai International sustained minor damage in a separate incident, which was quickly contained. Emergency response teams were immediately deployed and are managing the situation in coordination with relevant authorities. Four staff members sustained injuries and received prompt medical attention.
The Dubai Media Office noted that due to contingency plans already in place, most terminals had been previously cleared of passengers.
Flights in and out of the UAE have been mostly canceled due to close airspace in the country and neighboring nations as well as the cancellation of multiple airlines their flights to the region.
Elsewhere in the emirate, Dubai Civil Defence teams brought under control a minor fire on the exterior facade of Burj Al Arab hotel. The Dubai Government Media Office, citing competent authorities, stated that the incident resulted from debris from a drone that had been intercepted, with no injuries reported.
The UAE Ministry of Defence confirmed that air defence systems had intercepted and destroyed several waves of Iranian missiles and drones launched towards the country. The Ministry reported no material damage and no injuries, though debris had fallen on several areas in Abu Dhabi and Dubai.
The Ministry described the targeting as “a blatant violation of national sovereignty and international law,” affirming the UAE’s full right to take all necessary measures to protect its territory and people.
In response to the escalating crisis, UAE President Sheikh Mohamed bin Zayed Al Nahyan held phone calls with regional leaders. During a conversation with Turkish President Recep Tayyip Erdogan, both leaders discussed the serious threat the military escalation poses to regional security.
President Erdoğan reaffirmed Turkiye’s rejection of the Iranian attacks on UAE territory, warning that continued escalation would intensify tensions. Both leaders called for an immediate halt to military actions and emphasised the importance of addressing regional issues through dialogue.
Similarly, in a call with Kazakh President Kassym-Jomart Tokayev, the UAE received expressions of solidarity following what Tokayev described as “blatant Iranian attacks.” The Kazakh leader condemned the strikes as a violation of state sovereignty and international law, expressing support for all measures taken by the UAE to safeguard its sovereignty and national security.
Both leaders underscored the need for an immediate halt to escalatory actions and the pursuit of diplomatic solutions.
