UAE Stock Markets React to Iranian Attacks

On March 4, 2026, the stock markets in Dubai and Abu Dhabi experienced significant declines as they reopened after a two-day trading halt. This suspension was a direct response to a series of missile and drone attacks launched by Iran against the United Arab Emirates (UAE) on March 1, which targeted airports, ports, and residential areas across both emirates.

ReutersUAE bourses slide nearly 5% as markets reopen after 2-day halt following Iran attacksReuters

The UAE Capital Markets Authority (CMA) announced the resumption of trading on March 4, following the two-day closure that froze billions of dollars in listed assets. The Dubai Financial Market (DFM) saw its main share index drop by 4.7%, marking the largest intraday decline since May 2022. This downturn was largely driven by significant losses in major companies, including a 4.9% drop in Emaar Properties and a 5% decline in Air Arabia. Similarly, the Abu Dhabi Securities Exchange (ADX) reported a 3.6% decrease, with First Abu Dhabi Bank losing 5% of its value. Both exchanges implemented a temporary price limit of -5% for securities to manage the volatility.

UAE bourses slide nearly 5% as markets reopen after 2-day halt following Iran attacksReutersReuters

The CMA stated that it would continue to monitor the situation and take necessary measures to protect investors. The Dubai Financial Services Authority (DFSA) confirmed that Nasdaq Dubai would also resume trading on the same day. Additionally, the Abu Dhabi Securities Exchange instructed all listed companies to assess their financial and operational exposure and disclose any material information that could affect investor decisions.

UAE bourses slide nearly 5% as markets reopen after 2-day halt following Iran attacks

While the regulatory bodies have taken steps to stabilize the markets, some analysts have expressed concerns about the long-term implications of the attacks on investor confidence. The abrupt halt in trading and the subsequent market reactions may lead to increased volatility and uncertainty in the region's financial landscape.

Reuters

There are discrepancies in the reporting of the scale of the damage caused by the Iranian attacks. While some sources indicate widespread impacts on infrastructure, the exact financial implications for the affected companies remain unclear. This uncertainty has contributed to the cautious sentiment among investors as trading resumes.

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• “The resumption follows continued coordination between the Authority and the exchanges in line with the previously communicated timeframe,” — UAE Capital Markets Authority

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• “Both exchanges said they will ?temporarily set the lower price limit for securities at -5%.” — Dubai Financial Services Authority

UAE bourses slide nearly 5% as markets reopen after 2-day halt following Iran attacks

The situation remains fluid as investors and analysts await further developments regarding the aftermath of the attacks and their impact on the UAE's economy.

Reuters