Dubai’s stock index experienced its most significant one-day gain in six years on Wednesday, propelled by a provisional ceasefire between the U.S. and Iran.
This tentative agreement also instigated notable rallies across other Gulf markets, reaffirming investor confidence in the fundamentals of GCC financial markets despite short-term disruption.
Blue-chip property and banking stocks led the resurgence, recovering from the substantial declines that followed the onset of the Iran conflict on 28 February.
FY26 Highs
Trading volumes in Dubai soared five-fold on yesterday, reaching the highest levels observed in 2026. This increased activity contributed to a remarkable surge of 6.9% in the index, bringing it to 5,777 points, marking the largest gain since March 2020.
Yet Abu Dhabi’s benchmark climbed 2.9%, reducing its losses since the beginning of the conflict to 5.6%.
The UAE markets had been under significant selling pressure since the conflict began, as highlighted by market analysts. Many foreign investors had built substantial positions in UAE equities, particularly in banks and real estate, over the past year.
For instance, prior to the onset of hostilities, foreign institutions held more than 50% of Emaar Properties’ shares. Following the ceasefire announcement, Emaar’s stock surged 13%, recovering from a 31% drop since late February.
UAE Banks Recover Losses
Emirates NBD and Dubai Islamic Bank, the largest lenders by assets in the emirate, experienced gains of 11 and 6%, respectively.
Abu Dhabi’s Aldar Properties also posted a solid increase of 10%.
Qatar and KSA
In Qatar, the index rose 3.7%, mitigating losses from the conflict to 3.6% as Qatar National Bank climbed by 4.2%.
Saudi Arabia’s benchmark saw a modest increase of 2.1%, benefiting from minimal disruptions to its economic activity and its ability to maintain significant crude oil exports via the East-West pipeline to Yanbu.
KSA and Oman have outperformed all GCC peers on their respective stock markets since the onset of the conflict.
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