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Amazon cloud facilities in UAE and Bahrain hit by drone strikes; Abu Dhabi warehouse shut amid Iran-Israel-US war

Amazon’s cloud unit AWS said on Monday that drone attacks have affected its facilities in the United Arab Emirates (UAE) and Bahrain amid the Middle East conflict.

This came just hours after the company’s cloud computing facilities in the Middle East encountered power and connectivity issues after unidentified “objects” crashed into its data center in the UAE.

This isn’t the only impact Amazon is facing due to the war in Iran and its impact on the Gulf states.

Amazon has closed its fulfillment center in Abu Dhabi and suspended deliveries across the region as the e-commerce giant responds to growing instability in the Middle East, sending ripples across the region and around the world, according to a new report.

Amazon’s internal memo

Amazon shared an update on its facility closure in an internal memo to employees and stakeholders this week. Business ContentAnyone who saw this note reported it. As a result, customers in this area are experiencing delays in deliveries and returns, the statement said.

The company also halted all business travel to Israel and Lebanon; Many Amazon employees in the region switched to working from home this week. The note stated that Amazon employees in Saudi Arabia and Jordan were instructed to stay at home.

There have been no reports of employee safety issues so far. Business Content he reported, referring to the note.

“Our priority is the safety of our employees and partners across the region, and we are working closely with our local teams to ensure they have the support they need,” an Amazon spokesperson told the media outlet.

This disruption serves as a reminder of how quickly geopolitical tensions can cause strain in global supply chains.

Amazon expanded its logistics footprint in the Middle East after acquiring Souq.com for $600 million in 2017.

It forms the backbone of this network, which also includes Amazon marketplaces in the UAE, Saudi Arabia, Egypt and Türkiye.

Amazon did not specify how long these delays would last or how long deliveries in Abu Dhabi would be suspended.

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Shipping delays

The impact of the Amazon facility closure extends far beyond the company’s own warehouses, affecting third-party sellers as well.

Citing the notification, the report said that around 3 lakh third-party sellers in the Middle East are facing shipment delays and possible order cancellations as logistics channels shrink.

Many of these third-party sellers rely on Amazon’s infrastructure for cross-border shipping throughout the affected Gulf region.

According to the note quoted Business ContentThe closure in Abu Dhabi is likely to reduce network capacity at Amazon’s Middle East businesses. The e-commerce giant has also placed additional operational support on standby to manage the outage. The note stated that the company was monitoring the situation.

This incident occurred against the backdrop of coordinated US and Israeli airstrikes on several Iranian cities on February 28, targeting military command centers, air defense systems, missile sites and key regime infrastructure.

These attacks resulted in the deaths of Iran’s religious leader Ayatollah Ali Khamenei and four senior military and security officials.

Key Takeaways

  • The closure of Amazon’s Abu Dhabi facility has far-reaching consequences for third-party sellers in the Gulf.
  • Geopolitical tensions can severely disrupt logistics and supply chains, affecting global trade.
  • Amazon prioritizes employee safety while managing operational disruptions in the region.

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