Equity markets in the United Arab Emirates ended lower on Wednesday after trading resumed following a two-day suspension triggered by Iran’s attacks on the Gulf nation since Saturday.
Both the Dubai Financial Market and the Abu Dhabi Securities Exchange imposed a temporary 5% downside price limit on securities to shield investors from sharp volatility.
Abu Dhabi’s benchmark index fell 1.93%, with declines seen across most sectors. Stocks including Aldar Properties, First Abu Dhabi Bank, Abu Dhabi Aviation, and Abu Dhabi National Hotels hit the 5% lower trading limit, according to LSEG data.
In Dubai, the main index dropped 4.7%, led by losses in banking and airline stocks. Emirates NBD and Mashreq both declined 5%. Air Arabia—the exchange’s only listed airline—also fell nearly 5% to AED5.14. Meanwhile, Salik and Dubai Electricity and Water Authority reached their lower trading limits, reflecting their sensitivity to mobility and population trends.
Chiro Ghosh, group head of research at Bahrain-based investment bank SICO, said the 5% cap helped ease panic selling in the initial stages of trading. However, he warned that if tensions continue, stock prices could adjust further to align with regional market performance.
Ghosh added that UAE equities had enjoyed a strong start to the year, supported by significant foreign inflows, and the recent decline may partly reflect profit-taking. He expects sectors such as real estate, transportation, and tourism-related companies to lag the broader market, whilst other sectors could stabilise over the medium term, potentially presenting investment opportunities once volatility subsides.
The Abu Dhabi Securities Exchange has also instructed listed firms to evaluate and disclose any financial or operational exposure linked to the latest developments, highlighting the importance of timely reporting of material information for investors.
Elsewhere in the region, Saudi Arabia’s Tadawul All Share Index rose 1.20%, led by gains in Alujain Corporation and Saudi Research and Media Group, both of which surged nearly 10%. Shares of Saudi Aramco slipped 2.32% after Saudi authorities reported an attempted attack on the company’s Ras Tanura refinery.
Meanwhile, Qatar’s QE Index gained 0.75%, with most banking stocks ending the session higher.
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