Arabic version: أسواق الأسهم في الإمارات تخسر 120 مليار دولار بسبب النزاع الإيراني

The stock markets in the United Arab Emirates, specifically in Dubai and Abu Dhabi, have experienced significant losses totaling around $120 billion since the onset of the US-Israel war on Iran. This decline has positioned them among the hardest-hit financial markets worldwide.

According to Al Jazeera, the benchmark indexes for Dubai and Abu Dhabi have dropped approximately 16 percent and 9 percent, respectively, since the United States and Israel launched their war on Iran on February 28. The Dubai Financial Market (DFM) General Index alone has lost about $45 billion, while the ADX General Index has shed about $75 billion.

In contrast, financial markets in neighboring Qatar and Bahrain have also faced declines, with drops of about 4 percent and 7 percent, respectively. Interestingly, exchanges in Saudi Arabia and Oman have reported gains during this period. Meanwhile, on Wall Street, the S&P 500 has fallen about 7 percent, influenced by mixed signals from US President Donald Trump regarding the war’s duration and objectives.

The war has also affected the UAE’s status as a regional travel hub, leading to the cancellation of tens of thousands of flights, particularly at Dubai’s international airport, which is the busiest for international passengers. Travel and tourism, which contributed approximately $70 billion to the UAE economy last year, represent 13 percent of the nation’s gross domestic product (GDP).

Economists suggest that while the current market downturn is concerning for the UAE’s aspirations to be a financial hub, it may be a temporary setback. Haytham Aoun, an assistant professor of finance at the American University in Dubai, views the situation as a short-term shock rather than a sign of structural economic damage. He emphasized the importance of regulatory quality and institutional resilience in assessing the long-term viability of financial centers like Dubai and Abu Dhabi.