Stocks in the United Arab Emirates fell sharply on Wednesday as markets reopened after a rare two-day trading halt triggered by Iran’s missile and drone attacks on the Gulf nation over the weekend, prompting investors to reassess geopolitical risks, Reuters reported.Dubai and Abu Dhabi exchanges had suspended trading on March 2 and March 3 — an unusual move outside routine holiday or mourning closures — as authorities assessed damage from strikes that targeted airports, ports and residential areas across the emirates.When trading resumed, Dubai’s benchmark index slid 4.7 per cent, its steepest intraday drop since May 2022. The declines were broad-based, led by blue-chip developer Emaar Properties which fell 4.9 per cent, while budget airline Air Arabia dropped 5 per cent.Airlines and tourism companies have been under pressure after more than 20,000 flights were cancelled across the region, while governments rushed to repatriate travellers stranded in the Middle East.Among financial stocks, Emirates NBD, the UAE’s top lender, declined 5 per cent.In Abu Dhabi, the main index dropped 3.3 per cent– also the sharpest fall since May 2022. First Abu Dhabi Bank, the largest lender in the UAE, fell 5 per cent, while energy companies Dana Gas and TAQA each lost 5 per cent.Property developer Aldar Properties declined 5 per cent. ADNOC-linked energy companies across the fuel distribution, drilling, logistics and gas chain also came under pressure as the broader energy complex sold off.The combined market capitalisation of companies listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) stands at roughly $1.1 trillion.To contain volatility, both exchanges temporarily set the lower price limit for securities at minus 5 per cent. The Abu Dhabi Securities Exchange also asked listed companies to immediately assess financial and operational exposure and disclose any material information that could affect investor decisions.Abu Dhabi Commercial Bank fell 4.9 per cent after the lender said it had restored its mobile banking app following a disruption that also affected its contact centre, though some services were still being reinstated.“The closure sent investors the message that regulators are prioritising orderly price discovery over a volatility rollercoaster,” said Ahmad Assiri, research strategist at Pepperstone, quoted Reuters.Traders should expect a volatile phase as markets reprice two days of global and regional developments, he said, adding that trading volumes could surge as pent-up orders hit the market.“Because the Saudi market has already absorbed the initial shock, recovering from a 5% Sunday drop to post gains by Tuesday, the UAE reopening is expected to follow this recovery template to some extent,” Assiri said.Elsewhere in the Gulf, Saudi Arabia’s benchmark index rose 1 per cent, extending gains from the previous session. Al Rajhi Bank gained 0.9 per cent while petrochemical giant Saudi Basic Industries Corp traded 1.2 per cent higher despite reporting a large net loss in 2025 due to asset impairments and divestments in Europe and the Americas.Jabal Omar Development, which operates a hotel and property complex near the Grand Mosque in Mecca, jumped about 5 per cent after reporting a sharp rise in annual profit. Budget airline flynas gained 2.1 per cent, though oil major Saudi Aramco slipped 0.7 per cent.Oil prices climbed around 3 per cent as the US-Israeli war on Iran disrupted Middle East supplies, although gains slowed after US President Donald Trump suggested the US Navy could escort vessels through the Strait of Hormuz.In Qatar, the main index rose 0.6 per cent with Qatar Islamic Bank advancing 1.1 per cent. However, Industries Qatar fell 1.3 per cent after announcing plans to suspend and cut some products.Oman’s Muscat index declined 0.7 per cent, Bahrain’s benchmark dropped 0.8 per cent and Kuwait’s market edged 0.2 per cent lower. Outside the Gulf region, Egypt’s blue-chip index retreated 1.6 per cent.
