Dubai / Abu Dhabi : The UAE’s key stock indices opened in negative territory on Thursday, with Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) both trading lower as investors react to mounting geopolitical tensions in the Middle East, particularly the ongoing Israel-Iran conflict.
Property and Financial Stocks Bear the Brunt
Real estate and banking sectors were among the early losers, as concerns around regional stability and investor risk appetite rattled sentiment.
- Union Properties and Shuaa Capital on the DFM dropped over 7% in the first 15 minutes of trade.
- Emaar Development also fell sharply, declining more than 4%.
- The DFM General Index slid by 2.6%, while the ADX posted a more modest decline of just under 2%.
Investor Sentiment Turns Cautious
The sell-off follows Israel’s airstrikes on Iranian nuclear and military sites, which triggered a sharp rise in global oil prices and raised fears of a broader conflict in the region. UAE investors are now pricing in the potential for economic spillover, particularly in real estate, finance, and tourism sectors.
Analysts expect continued volatility in the short term as the market gauges further developments.
“Geopolitical escalation typically leads to a pullback in risk-heavy sectors like real estate and banking, and that’s exactly what we’re seeing across UAE markets today,” said a senior trader at a Dubai-based brokerage.
Outlook
While UAE markets have been resilient in previous bouts of regional instability, today’s early losses highlight the sensitivity of Gulf markets to geopolitical shocks. Analysts note that any signs of de-escalation could lead to a rebound, especially with underlying fundamentals in the UAE economy remaining strong.
