Dubai financial district rattled by Iranian drones
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Iran’s drone war against the United Arab Emirates is menacing Dubai’s financial district, after a spate of attacks has alarmed residents.
Debris from an intercepted drone caused “a minor incident” on the facade of a building in central Dubai, where the Dubai International Financial Centre is located, the emirate’s media office confirmed on Friday.
Residents in nearby apartment blocks heard what they described as the loudest bang of the war, which has led to Iran sending more than 1,500 drones and about 300 missiles into the UAE. “It was so loud I thought my windows would shatter,” said one.
The higher floors of DIFC’s Innovation One tower, where the Sexy Fish restaurant is located on the ground floor, bore visible damage, including smashed-out windows and pockmarked cladding. The restaurant itself was not damaged and will reopen on Saturday, a spokesperson said.
Passers-by who attempted to take photos were admonished by security guards. Foreigners have been arrested for filming or sharing images of national security incidents. Administrators of WhatsApp groups have also been questioned by security services for sharing such information in private messaging groups.
On Thursday, an incident alarmed staff working from offices in the DIFC, when a drone flew over the centre before heading towards the coast and landing in a residential area.
Lawyers rushed down from their offices on hearing a lawnmower whine, followed by a loud bang; one smoker on the ground floor witnessed a fighter jet trying to down the drone.
In a second incident on Thursday, debris from an interception fell on to a tower located near the local Metro station, with smoke rising in full view of many DIFC offices.
The usually bustling district has been one of the quieter business zones in Dubai since the war broke out almost two weeks ago. Many international firms were quick to urge staff to work from home, leaving car parks and retail outlets relatively empty.
The DIFC drone incidents came a day after Iranian officials threatened to attack banks and US companies in retaliation for strikes on a lender in the Islamic republic. Citi and Standard Chartered also extended work from home arrangements, in response to that threat.
Drone activity around the towers of DIFC has exposed the vulnerability of Dubai’s diversified economy, which has attracted many foreigners seeking a safe, low-tax environment.
But the UAE has managed to intercept the vast majority of missiles and drones — despite facing the harshest Iranian barrage of any other country.
Bankers and UAE officials said an economic rebound could be contingent on a ceasefire that settles the issue of missiles and drones. They fear an intact Iranian regime will be able to undermine stability merely with the threat of attack.
Many expatriates have taken some comfort from the relatively low level of casualties — about six dead and 130 injured in the UAE.
High-profile attacks that affected the Fairmont The Palm hotel and the US consulate in Dubai have caused limited damage.
“The Iranians don’t want to hurt us, they don’t need to,” said one DIFC-based executive. “They just need to terrorise us in order to strangle the economy.”
The drone activity is also disrupting the UAE’s efforts to repatriate tens of thousands of stranded passengers by resuming commercial aviation, which officials say has reached more than 55 per cent of its prewar activity in Dubai.
The defence ministry has released images of fighter jets using cannons, rather than missiles, to take down drones, while French and UK fighter jets and Ukrainian anti-drone teams have also been deployed.
A diplomat said the use of fighter jets would help preserve interceptor stocks. Helicopters had also proved successful in countering drones given their lower speed, they added. Two Emirati servicemen were killed this week in a helicopter crash caused by a technical malfunction.
Dubai officials are angered at Iran’s “vicious” targeting of the UAE, and the trade hub of Dubai in particular, given historic trade and financial ties between the emirate and the Islamic republic.
The DIFC supercharged Dubai’s development in the early 2000s, attracting major banks such as Morgan Stanley and Goldman Sachs as global financiers used the city as a launch pad into the oil-rich region. Growth has been fuelled in recent years by the arrival of hedge funds, fintech firms and family offices.
The district, also famed for its concentration of high-end restaurants such as Zuma, is home to more than 1,500 regulated firms and more than 50,000 workers, one of the highest concentrations of regulated financial companies in the region.
Data visualisation by Alan Smith
