Luxury Dubai hotel damaged in explosion as debris rains down on city

Six people have been injured, a luxury hotel set on fire and a major port damaged.

Multiple explosions have been heard in Dubai as Iran carries out retaliatory attacks in the Middle East, leaving several injured and damaging luxury hotels, the world's busiest airport and the emirate's major commercial port.

Footage shows a drone striking the ground in Dubai's upmarket Palm Jumeirah district throwing off debris that damaged Fairmont Hotel and injured multiple people.

Video obtained and verified by CNN shows the moment the projectile, reported to be rogue missile debris, hits the ground and sets the hotel on fire. Shrapnel injured four people.

LIVE UPDATES: Iran launches retaliatory attacks on US bases, Israel

READ MORE: Aussies warned against travelling to Qatar, UAE in wake of strikes on Iran

Another two people were injured when debris from drones intercepted by air defences fell in the courtyards of two homes, the Dubai Media Office confirmed this morning (afternoon AEDT).

Tourists across the popular holiday destination watched missiles be shot down in the sky above them, the retaliatory attacks by Iran triggering travel chaos across the United Arab Emirates (UAE) with flights cancelled and airspace across the Middle East drastically emptied.

Carina Rossi, a senior editor at nine.com.au, is staying at Atlantis - The Palm, located at the tip of the Palm Jumeirah district, and saw debris falling into the hotel pool about the same time as the explosion near the Fairmont.

Rossi said she and other hotel guests "panicked" and ran to the beach after seeing debris fall from the sky right in front of them.

"The debris didn't explode, thankfully. But it was a loud bang, something I'd never heard before," Rossi told nine.com.au.

Her Emirates flight, due to leave Dubai on Saturday, was cancelled.

She and other guests were then woken to an alert which urged them to seek shelter amid imminent missile threats.

"When we got the alert at 12.30 we could instantly hear explosions in the distance," she said.

Rossi is safe and back at her hotel.

More loud blasts were heard in Dubai this morning (this afternoon AEDT) but there were no reports of injuries.

CNN reporters heard three loud blasts followed by a series of explosions three minutes later.

Authorities said debris from an aerial interception over Business Bay caused a fire in the city's major commercial port, Jebel Ali Port.

"Dubai Civil Defence teams responded immediately and are continuing their efforts to fully extinguish the fire. No injuries have been reported," Dubai's media office said in a post on social media.

In one video taken from high up in a Dubai building, a huge plume of dark smoke can be seen billowing in the distance.

Another shows puffs of white smoke high in a clear blue sky after strikes were intercepted over the emirate.

The Australian government has advised travellers to avoid the UAE among a slew of other Middle Eastern countries in the wake of the US-Israel joint strike on Iran.

But it was too late for some, such as Australian billionaire Adrian Portelli, who were already in the emirate.

"Appreciate everyone checking in and we're totally fine," he said on Instagram.

"Dubai is still Dubai... dinner plans remain intac (sic).

"Even though UAE is quite literally in the middle of the war, it still feels safer than Melbourne."

Australian-born radio host Kris Fade said he and his children were all together in the same downstairs room of their house.

We were all sleeping a moment ago and then you could hear it, you could actually hear the missiles coming through," he told 9News.

" ... Could this be a 24-hour thing, a 48-hour thing? Could it be a week? Could it be longer? We're not sure, but right now, it's the beginning part of it."

READ MORE: Trump tells Iranian officials to lay down arms or 'face death'

Debris from an intercepted drone damaged the Burj Al Arab, a famous seven-star hotel in Dubai.

Debris caused a minor fire on the hotel's outer facade, Dubai's Media Office confirmed in a post on X.

Civil Defence teams responded immediately and brought the incident under control," the spokesperson said.

"No injuries have been reported."

Dubai international Airport, the world's busiest, suffered "minor damage" in an apparent missile strike and many flights were cancelled as travel chaos reigned throughout the region.

How has Iran responded?

The US and Israel launched joint strikes on Iran on Saturday.

Iran has retaliated with an unprecedented wave of strikes across the Middle East, targeting several nearby countries that host US military bases, as well as Israel.

When the US and Israel last struck Iran in June, they targeted its stockpile of ballistic missiles, hampering its ability to retaliate.

Iran could be trying to make use of its arsenal while it still has it.

As well as the UAE, blasts have also been reported in Jordan, Qatar and Bahrain, as well as in Iran's key regional rival, Saudi Arabia, which vowed to take "all necessary measures" to defend itself.

A drone strike caused damage and minor injuries at Kuwait International Airport.

Qatar and Jordan intercepted missiles targeting their countries.

One person was reportedly killed by falling debris after air defences intercepted missiles targeting sites in Abu Dhabi.

The clashes have also disrupted traffic in the Strait of Hormuz – a crucial shipping route located between the Persian Gulf and the Gulf of Oman.

The US hasn't suffered any combat-related casualties in its operation against Iran and damage to US military installations has been minimal, US Central Command said in a statement.

-- Reporting with CNN

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

• Download the 9NEWS App here via Apple and Google Play
• Make 9News your preferred source on Google by ticking this box here
• Sign up to our breaking newsletter here