Life goes on in Dubai amid Iran war

Tensions are high in Dubai. Social situations and daily activities Residents told CNBC they were being interrupted by evacuation warnings and flashes in the sky as air defenses intercepted drones, but most of life continued as normal.

Iran has launched drones and missiles at neighboring countries in the Middle East since the US-Israeli strikes that began on February 28. Tehran has targeted US military bases in the region, as well as oil and gas production facilities and civilian infrastructure.

The United Arab Emirates, along with several other countries, mobilized air defenses as the attacks continued into the second week of the conflict and rushed to reassure citizens and international investors the country has courted for years.

But Dubai Police has warned citizens that “photographing or sharing security or critical sites or reposting unreliable information may lead to legal action and compromise national security and stability”.

A total of 21 people have been charged in connection with social media posts about the Iranian strikes, according to Detained in Dubai, which works to support people caught up in tough local laws.

While many migrants have scrambled to leave the region since the war broke out, others have chosen to stay and some have shared their experiences with CNBC.

Since the start of the war, Dubai’s five-star Fairmont The Palm hotel has been shot down and debris from an Iranian drone caused a fire at the Burj Al Arab hotel. Dubai’s airport was damaged by a missile attack, and on Tuesday, the US consulate in Dubai was hit by a suspected drone strike that caused a fire nearby.

Attacks on AWS data centers in the country last week caused disruptions in banking, payments, industry and consumer services.

“Living in Dubai right now is a strange mix of normality and quiet excitement,” Glenn Pawson, managing partner of marketing agency M3, who moved to the city in 2025, told CNBC.

“It’s surprisingly easy to get absorbed in the rhythm of daily life and almost forget the wider situation,” he added.

“Then you remember something. For us, usually phone alerts tell people to take shelter.”

In some cases, Pawson said, he witnessed air defense countermeasures being launched into the sky. “Seeing the flashes in the distance and, in some cases, burning as the debris falls back to Earth is surreal.”

Despite that, businesses are still operating, people are still socializing and the general atmosphere is one of “cautionary awareness” as opposed to “panic,” he said.

“The reality on the ground is that life is completely normal and completely abnormal at the same time,” Pawson told CNBC. “You can go watch defense systems light up the sky every day in minutes.”

Harley McGaughan lived in Dubai for two years, having previously been in London, and owns a luxury personal shopping business. He said he “never felt safe”.

“Footfall in our physical store is down, but online inquiries and personal messages are steady,” he told CNBC. Dubai is quieter, restaurants and beach clubs are less busy, but “life goes on if you run a business and call the UAE home,” added McGaughran.

On March 6, “we received a government warning to evacuate while at the restaurant, which was handled effectively and without fear, the place is still reasonably busy,” he said.

The situation in Dubai is “functioning but tense,” said Nick Rowles-Davies, a lawyer who moved to Dubai in 2022, having previously lived in London.

“There is a visible vigilance in some areas, especially at night when interceptions can be heard,” he told CNBC. “It’s not panic, but there’s a clear recognition that it’s not distant geopolitics anymore.”

Several major international banks pulled employees from their Dubai offices on Wednesday after Iran said it would target financial centers and US-linked financial institutions across the Middle East, despite government efforts to present a picture of business as usual.

The international financial center of Dubai has been quiet this week after two consecutive strikes by Iran targeted the region. Dubai’s media office confirmed the incidents, but said there were no injuries.

Goldman Sachs, Citi and Standard Chartered regional centers ordered their staff to work from home.

The financial center’s iconic ICD Brookfield Building, a skyscraper designed by Foster + Partners and home to BlackRock, Bank of America, JP Morgan, EY and BNP Paribas, is usually bustling with bankers but is currently empty.