Stocks in Dubai and Abu Dhabi tumbled on Wednesday as markets reopened after a two-day halt following Iran’s unprecedented wave of missile and drone attacks on the Gulf nation on Sunday.
The UAE’s Capital Markets Authority closed the ADX and DFM on March 2 and March 3, an extraordinary step outside usual holiday and mourning closures.
Market cap stands at roughly $1.1tr across both exchanges.
The closure froze trading in billions of dollars’ worth of listed assets as investors awaited clarity on the scale of damage from the weekend strikes on airports, ports and residential areas across both emirates.
Dubai’s main share index slid 4.7 per cent, its biggest intraday drop since May 2022, in broad-based declines led by blue-chip developer Emaar Properties 4.9 per cent, while budget airline Air Arabia retreated 5 per cent.
Airlines and the tourism sector rushed to respond to more than 20,000 flight cancellations, while governments moved quickly to repatriate travellers stranded in the Middle East.
Top lender Emirates NBD dropped 5 per cent.
In Abu Dhabi, the index fell 3
3 per cent, also the steepest decline since May 2022, with biggest lender First Abu Dhabi Bank FAB.AD losing 5 per cent. Among energy stocks, Dana Gas and TAQA were down 5 per cent each.
Aldar Properties was down 5 per cent.
ADNOC — the parent across the fuel distribution, drilling, logistics, and gas chain — came under pressure, the entire complex sold off in tandem.
Both exchanges said they would temporarily set the lower price limit for securities at -5 per cent.
The Abu Dhabi Securities Exchange has told listed companies to immediately assess financial and operational exposure and promptly disclose any material information that could influence investor decisions.
Abu Dhabi Commercial Bank plunged 4.9 per cent. The UAE‘s third-largest lender by assets said it has restored its mobile banking app after a disruption that also hit its contact centre, with some features still being reinstated.
The closure sent investors the message that regulators are prioritising orderly price discovery over a volatility rollercoaster, said Ahmad Assiri, a research strategist at Pepperstone.
Traders should expect a volatile price-discovery phase as markets reprice two days of global and regional developments. Volumes may run well above average as pent-up orders hit the tape, Assiri added.
“Because the Saudi market has already absorbed the initial shock, recovering from a 5 per cent Sunday drop to post gains by Tuesday, the UAE reopening is expected to follow this recovery template to some extent,” Assiri said.
Saudi Arabia’s benchmark index rose 1 per cent, on course to extend the previous session’s gains, led by an increase of 0.9 per cent in Al Rajhi Bank 3 per cent while petrochemical maker Saudi Basic Industries Corp trimmed early gains to trade 1.2 per cent, although the company swung to a massive net loss in 2025.
That outcome was mainly due to impairments and losses related to the divestment of assets in Europe and the Americas.
Jabal Omar Development – which runs the Jabal Omar complex of hotels and property within walking distance of the Grand Mosque in the Muslim holy city of Mecca – advanced about 5 per cent, following a steep rise in annual profit.
Elsewhere, budget airline flynas rose 2
1 per cent.
However, oil major Saudi Aramco fell 0.7 per cent.
Oil prices rose 3 per cent as the U.S.-Israeli war on Iran disrupted Middle East supplies, but the pace of gains slowed from past sessions after President Donald Trump suggested the US Navy could escort vessels through the Strait of Hormuz.
In Qatar, the index added 0.6 per cent, with Qatar Islamic Bank QISB.QA advancing 1.1 per cent.
However, Industries Qatar fell 1
3 per cent, as the petrochemical maker announced plans to suspend and cut some products.
Muscat’s index lost 0.7 per cent, whereas the Bahraini index .BAX was down 0.8 per cent.
The Kuwaiti index eased 0.2 per cent.
Outside the Gulf, Egypt’s blue-chip index retreated 1.6 per cent.