The UAE’s industrial base is now in the line of fire. Emirates Global Aluminium (EGA) says its Al Taweelah site in Khalifa Economic Zones Abu Dhabi (Kezad) sustained “significant damage” following recent missile and drone attacks, with minor injuries reported. The company is still assessing the extent of the damage. Aluminium Bahrain was also hit over the weekend.

The impact on supply comes into focus quickly. Al Taweelah — one of two smelters the EGA operates in the UAE — produced 1.6 mn tons of cast metal last year, anchoring a key UAE export chain. EGA says it has inventory in transit and overseas, but any prolonged disruption risks feeding through to downstream supply, pricing, and delivery timelines.

“These are two of the biggest regional players, and any hit to their production and supply infrastructure naturally disrupts the flow of metals that several global industries rely on,” dry bulk shipping consultancy Bharat Maritime told EnterpriseAM in a statement.

The disruption is likely to be prolonged, as damage to key facilities means it’ll take a while before production can resume, Bloomberg reports.

What we can expect on the price front: “A significant premium on aluminium prices globally” is likely, even as global heavyweight producers India and China could potentially fill the gap left in the wake of the strikes, the consultancy said.

Foreign investors are also likely to start looking for other industrial hubs with less risk attached, it added.

Currently, around 9% of the world’s total aluminium supply comes from the region. The strikes are likely to put further upward pressure on aluminium prices, which have already risen to their highest levels in four years, with the London Metal Exchange three‑month contract hitting USD 3.5k earlier last week.

It wasn’t just EGA

Multiple fires broke out across Kezad after intercepted debris fell into industrial areas, injuring six people across three incidents before it was contained, Wam reports (here and here).

It was expected: Iran’s Foreign Minister Abbas Araghchi warned that his country will “exact heavy price” for Israeli strikes on its infrastructure — signalling retaliation could extend to Gulf industrial assets after attacks on its own steel plants.

Theimplication: The scope of targets of Iranian strikes has widened from energy to heavy industry, raising the stakes for regional supply chains and export continuity that are already struggling under the pressure of the Strait of Hormuz disruption.

Defense capability is still in focus

As the barrage on the UAE continues, with air defenses intercepting 16 Iranian ballistic missiles and 42 UAVs yesterday alone, officials are looking to strengthen defense capacity, and diplomacy is playing a big role.

UAE President Mohamed bin Zayed Al Nahyan met with his Ukrainian counterpart Volodymyr Zelenskiy recently, state news agency Wam reports, and Zelenskiy mentioned that Ukraine’s defense system is built to intercept drones and missiles at scale, and that “this [...] is exactly what we are offering to our partners” in an X post.

The model is already taking shape: Kyiv has been locking in long-term defense partnerships with Qatar and Saudi Arabia centered on countering aerial threats, moving beyond procurement into joint production and shared systems.

Yes, but: Iranian officials warned that Kyiv’s provision of drone and defense support could render it a “legitimate target” — a signal that technical cooperation may be pulled directly into the conflict.

Air defense isn’t the only layer being built

The UAE is also pushing for a multinational “Hormuz Security Force” to reopen the Strait of Hormuz and escort shipping — signalling it is ready to deploy naval assets as part of a broader coalition, the Financial Times reports, citing people it says are familiar with the plans. Abu Dhabi is also working with Bahrain on a UN Security Council resolution to mandate the force, even as backing remains uneven across Gulf states and Western allies.

REMEMBER- Traffic through the strait — which carries roughly a fifth of global oil and gas — has slowed to a trickle, choking a route that underpins Gulf exports and global energy pricing. Adnoc Gas has already been forced to tweak LNG and liquids output, with volumes at Das Island running at very low levels due to export constraints.

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