Dubai-Abu Dhabi highlights: Saudi orders Iranian military attache to leave; UAE intercepts missiles

People sit along the Corniche on the second day of Eid al-Fitr celebrations, marking the end of the Muslim holy month of Ramadan, in Doha.

Dubai Abu Dhabi news highlights: Iran's military on Saturday warned the UAE against allowing any attacks from its territory on two disputed islands in the Gulf, near the strategic Strait of Hormuz, and threatened to attack the city of Ras Al Khaimah. Meanwhile, the United States reportedly announced plans to deploy additional warships and Marines to the West Asia region.

Among the latest developments are:

Authorities in Dubai on Saturday confirmed that loud sounds heard across parts of the city were the result of successful air defence interception operations, signalling the spillover of hostilities into the Gulf.

In a further escalation, Iran’s Islamic Revolutionary Guard Corps (IRGC) has warned that the UAE’s port city of Ras Al Khaimah could be targeted if Iran’s strategically located islands – Abu Musa and Greater Tunb – are attacked again. These islands lie near the Strait of Hormuz, a crucial global transit route, and remain under Iranian control despite being disputed by the UAE.

Meanwhile, Saudi Arabia said it intercepted 20 drones within just a few hours in its eastern region, home to key oil infrastructure. Officials reported no casualties or damage.

The escalation follows intensified Iranian retaliation after Israeli strikes on its South Pars gas field. The conflict has already resulted in heavy casualties, with over 1,300 people reported dead in Iran. In Israel, at least 15 people have been killed in missile attacks, along with four deaths in the West Bank. Additionally, 13 US military personnel have been killed.

The conflict has also disrupted global energy markets, pushing Brent crude prices to around $108 per barrel from roughly $70 before the war.

Amid the escalating situation, Ministry of External Affairs said six Indian nationals have died and one person remains missing in separate incidents across the Gulf region, highlighting the risks faced by expatriates caught in the conflict zone.

Dubai’s economy showing early signs of stress

The crisis is beginning to weigh on Dubai’s economy, particularly its real estate sector. Analysts report a sharp decline in transaction volumes, down 37% year-on-year and 49% month-on-month in early March, reported Reuters.

Properties in premium locations, including areas near the Burj Khalifa and Palm Jumeirah, are seeing discounts of up to 15%. Shares of Emaar Properties have dropped more than 26% since the conflict began.

While investors are increasingly cautious, some continue to seek discounted deals, indicating that market activity has slowed but not stopped.

Middle East airlines scale back operations

Aviation across the region remains severely disrupted due to airspace restrictions and safety concerns.

Emirates is operating a reduced schedule following partial airspace reopening, while Etihad Airways is running limited commercial services from Abu Dhabi.

Saudi carrier Flynas has suspended several regional routes, and Qatar Airways is operating a restricted flight schedule. The disruptions have stranded thousands of passengers and continue to affect travel across key Gulf hubs, Reuters reported.

With threats expanding to strategic Gulf locations, rising casualties, economic strain and disruptions to global oil and aviation sectors, the West Asia conflict is increasingly taking on a broader regional dimension, raising concerns of further escalation in the days ahead.