- Indices drop for the seventh time
- Dubai down 17%, Abu Dhabi 9%
- Blue-chip stocks heavily impacted
On Friday, the stock indices of Dubai and Abu Dhabi experienced a decline for the seventh time in eight sessions, as investor confidence waned further amid escalating conflicts in the Middle East, resulting in nearly $124 billion lost in the total market value of UAE companies.
Dubai’s benchmark decreased by 1.7 percent to close at 5,426 points, while Abu Dhabi’s index fell by 1.6 percent, settling at 9,480 points, marking their lowest closing values since mid-June 2025.
Since the onset of attacks on Iran by Israel and the United States on February 28, Dubai has seen a 17 percent reduction, while Abu Dhabi’s index has declined by 9 percent over these eight trading sessions.
The ongoing US-Israeli military actions have prompted Iran to nearly halt shipping activities in the strategically crucial Strait of Hormuz and retaliate with attacks on several Middle Eastern nations where US forces are stationed, including the UAE.
Blue-chip stocks were particularly affected by the sell-off on Friday. Emirates NBD, Dubai’s leading bank, and Emaar Properties, a major real estate developer, witnessed declines of 4.9 and 3 percent, respectively, and were among the most actively traded stocks by turnover.
In Abu Dhabi, Aldar Properties represented over one-third of the trading value but fell by another 4.3 percent. The banking sector in the UAE capital also suffered additional losses.
“The current market conditions in the UAE are indicative of a more extensive global change in investor attitudes,” noted Ashish Marwah, chief investment officer at Neovision Wealth Management in Abu Dhabi.
“Our markets are heavily concentrated in asset-centric sectors like banking and real estate, which are inherently vulnerable to global economic cycles and interest rate fluctuations. As we navigate through the ongoing regional instability, investors are rightly reassessing the links between these domestic foundations and the overall cooling of the global economy.”
The downturn in the UAE market follows an extended period of bullish trading that peaked in mid-February when Dubai’s index reached its highest point in 20 years and Abu Dhabi was close to its all-time high.
Since February 27, the combined market capitalization of Dubai has decreased by $49 billion, and Abu Dhabi’s by $75 billion, based on analysis from AGBI using stock market data.
“The significant adjustment we’ve observed serves as a recalibration of expectations,” Marwah explained. “Valuations are transitioning from a viewpoint of premium growth potential to more established fundamental values.”
