Stocks in Dubai and Abu Dhabi plunged on Wednesday as markets reopened following a two-day suspension amid Iran's wave of missile and drone attacks on the Gulf nation on Sunday, in response to U.S.-Israeli military action in Iran.
U.S. forces continued nonstop operations against Iran as Israel launched wide-ranging strikes on Iranian missile and air-defense targets.
The UAE’s Capital Markets Authority closed the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) on March 2 and March 3, an extraordinary step outside usual holiday and mourning closures.
The market cap stands at roughly $1.1 trillion 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%, its biggest intraday drop since May 2022, in broad-based declines led by blue-chip developer Emaar Properties 4.9%, while budget airline Air Arabia retreated 5%.
Airlines and the tourism sector rushed to respond to more than 20,000 flight cancellations, while governments moved quickly to repatriate travelers stranded in the Middle East.
Top lender Emirates NBD dropped 5%.
In Abu Dhabi, the index fell 3.3%, also the steepest decline since May 2022, with the biggest lender First Abu Dhabi Bank losing 5%. Among energy stocks, Dana Gas and TAQA were down 5% each.
Aldar Properties was down 5%.
ADNOC – the parent across the fuel distribution, drilling, logistics, and gas chain – came under pressure, and the entire complex was sold off in tandem.
Both exchanges said they would temporarily set the lower price limit for securities at minus 5%.
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%. 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 prioritizing 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% 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%, on course to extend the previous session's gains, led by an increase of 0.9% in Al Rajhi Bank 3%, while petrochemical maker Saudi Basic Industries Corp trimmed early gains to trade 1.2%, 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 Islam's holy city of Mecca, advanced about 5%, following a steep rise in annual profit.
Elsewhere, budget airline flynas rose 2.1%.
However, oil major Saudi Aramco fell 0.7%. Oil prices rose 3% as the U.S.-Israeli war on Iran disrupted Middle East supplies, but the pace of gains slowed from past sessions after U.S. President Donald Trump suggested the U.S. Navy could escort vessels through the Strait of Hormuz.
In Qatar, the index added 0.6%, with Qatar Islamic Bank advancing 1.1%. However, Industries Qatar fell 1.3%, as the petrochemical maker announced plans to suspend and cut some products.
Muscat's index lost 0.7%, whereas the Bahraini index was down 0.8%. The Kuwaiti index eased 0.2%.
Outside the Gulf, Egypt's blue-chip index retreated 1.6%.
