UAE stock markets experienced significant declines on Wednesday as trading resumed following a two-day emergency closure triggered by the outbreak of the Iran war.
The DFM index dropped by 4.7% on opening, while the ADX benchmark fell 3.5%, reflecting a surge in selling pressure that had built up during the market’s closure.
The severity of Dubai’s decline exceeded the 2.3% drop observed on 13 October 2023, during the initial phase of the Israel-Hamas conflict. The situation escalated further when Iranian strikes resulted in the deaths of three individuals in the UAE, followed by the closure of national airports following retaliatory attacks on Iran by the U.S. and Israel over the weekend.
In this tumultuous environment, blue-chip stocks across both exchanges were notably affected, with many hitting the maximum allowed decline of 5% for Wednesday trading.
In Dubai, major stocks such as Emirates NBD Bank and Emaar Properties, along with low-cost airline Air Arabia, all fell by 5%. Similarly, in Abu Dhabi, prominent firms including ADNOC Gas, Aldar Properties, Abu Dhabi Ports, and First Abu Dhabi Bank, the largest lender in the UAE, recorded declines approaching the 5% limit.
The market’s downward trajectory was already evident prior to the closure, as the DFM had fallen by 1.8% last Friday amid investor concerns surrounding military risks associated with regional tensions.
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