UAE stock market losses mount since onset of Iran war

• Indexes decline for seventh session
• Dubai down 17%, Abu Dhabi 9%
• Blue-chip stocks bear the brunt

The Dubai and Abu Dhabi stock indexes declined for a seventh session in eight on Friday as investor sentiment soured further due to a deepening Middle East conflict that has wiped nearly $124 billion from the value of listed UAE companies.

Dubai’s benchmark fell 1.7 percent to 5,426 points, while Abu Dhabi’s measure dropped 1.6 percent to 9,480 points as both indexes recorded their lowest closing levels mid-June 2025.

Dubai is down 17 percent and Abu Dhabi has slid 9 percent in the eight trading sessions since Israel and the United States launched attacks on Iran on February 28.  

The ongoing US-Israeli assault has spurred Iran to effectively halt shipping in the strategically vital Strait of Hormuz and retaliate with strikes on several Middle East countries in which the US military is present, including the UAE.

Blue-chip stocks bore the brunt of Friday’s selling pressure. Emirates NBD and Emaar Properties – Dubai’s top bank and real estate developer respectively – fell 4.9 and 3 percent and were the most traded stocks by turnover.

In Abu Dhabi, Aldar Properties accounted for more than one-third of traded value as it dropped a further 4.3 percent. The UAE capital’s banks also slid again.

“Current market dynamics in the UAE reflect a broader global shift in investor sentiment,” said Ashish Marwah, chief investment officer at Abu Dhabi’s Neovision Wealth Management.

“Our markets have a structural concentration in asset-heavy sectors like banking and real estate. These sectors are naturally sensitive to global macro cycles and interest rate environments.

“As we navigate the current regional volatility, investors are understandably re-evaluating the correlation between these domestic pillars and the broader global economic cooling.”

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The UAE market crash follows a sustained bull run that culminated in mid-February as Dubai’s index hit a 20-year peak and Abu Dhabi came within a few points of an all-time high.

Since February 27, the Dubai market’s combined market capitalisation has fallen by $49 billion, while Abu Dhabi’s has dropped $75 billion according to AGBI calculations based on bourse data.

“The sharp correction we’ve seen is a reset of expectations,” said Marwah. “Valuations are moving from a premium growth outlook toward more fundamental levels.”