UAE stock markets reopened on Wednesday after remaining closed for two days following a wave of Iranian missile and drone attacks on the Gulf nation. As trading resumed, stocks listed in Dubai and Abu Dhabi declined sharply.
The reopening comes after two days of global market sell-offs as investors closely monitor the escalating conflict between Iran and the United States.
Dubai and Abu Dhabi equities fell on Wednesday as trading resumed after the temporary shutdown. Dubai’s benchmark index closed 4.7% lower, marking its steepest decline since May 2022. Abu Dhabi’s main index dropped 1.9%, recovering slightly from earlier losses but still recording its worst session since April last year. The Nasdaq UAE 20 index ended the day down 4.4%.
In Dubai, state-owned lender Emirates NBD led the losses, falling 5.2%. In Abu Dhabi, Al Buhaira National Insurance Company and Umm Al Qaiwain General Investments were among the worst performers, dropping 9.6% and 8.7% respectively.
Ahead of the reopening, both exchanges announced a temporary adjustment to their lower price limit thresholds, setting them at -5% for securities.
Over the weekend, Iran launched multiple missile and drone strikes on the UAE in retaliation for U.S.-Israeli attacks that reportedly killed Iran’s Supreme Leader Ayatollah Ali Khamenei. The strikes targeted civilian and commercial locations, causing damage to Dubai International Airport, hotels, and Amazon data centers.
The attacks also triggered airspace closures across the UAE, leading to thousands of flight cancellations. Budget carrier Air Arabia was last seen trading about 5% lower.
In a research note released Tuesday, analysts at Citi warned that the escalation in the Middle East conflict could have “a profound and potentially long-lasting impact on the MENA region.”
According to the bank, Dubai-based developer Emaar and Abu Dhabi’s Aldar could face pressure on earnings-per-share growth, while banks such as NBK and Emirates NBD may experience the greatest downside risks within the financial sector.
The Gulf market decline on Wednesday follows several days of losses in global equities. Asian markets continued to slide during Wednesday’s session, while European stocks opened higher after two consecutive days of declines. Meanwhile, U.S. stock futures pointed to a weaker opening after the three major indexes closed lower on Tuesday.
