Dubai and Abu Dhabi stocks tumble after two‑day closure
- DFM and ADX reopen
- Bourses closed following Iran strikes
- Both imposed -5% temporary limit
UAE stock markets tumbled on Wednesday as trading resumed following a two-day emergency closure caused by the outbreak of the Iran war.
The Dubai Financial Market (DFM) index fell 4.7 percent at the open and the Abu Dhabi Securities Exchange (ADX) benchmark dropped 3.5 percent after pent-up selling pressure built during the closure.
Dubai’s decline was steeper than the 2.3 percent drop on October 13, 2023, during the early days of the Israel-Hamas war.
Iranian strikes killed three people in the UAE and shut the country’s airports after Tehran was attacked by the US and Israel on Saturday.
Blue-chip stocks in both exchanges fell by the maximum 5 percent – a temporary limit imposed for Wednesday trading – or close to it. Activity was muted.
In Dubai, most blue-chip stocks such as Emirates NBD bank and bellwether Emaar Properties fell 5 percent, as did low-cost airline Air Arabia.
In Abu Dhabi, Adnoc Gas, Aldar Properties, Abu Dhabi Ports and First Abu Dhabi Bank – the UAE’s largest lender – also dropped nearly 5 percent.
Markets had already been weakening before the closure. The DFM fell 1.8 percent last Friday as investors began pricing in military risk.
More news on the Iran conflict
- UAE spent $1bn a day downing missiles and drones, analysts say
- Oil climbs further as Iran targets energy facilities
- Global markets price stagflation risk from a protracted war
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