UAE stocks plunged on the first day of trading since the country was targeted by Iranian strikes. The main indices for the Abu Dhabi and Dubai bourses ended Wednesday down 1.9% and 4.7% respectively, with utility companies, banks, and property firms leading the declines.
Emirati regulators had closed the country’s stock markets for two days as its main business hubs were attacked by Iranian missiles and drones, upsetting the cities’ long-developed reputations as stable trading centers insulated from regional volatility. Citigroup said in a note that the conflict could have a “profound and potentially long-lasting impact” on the region.
Before the war, Dubai’s stock market had risen to the highest level since 2006, as the emirate’s economy and real estate market benefited from an ability to attract everyone from the super-rich to blue-collar workers. Elsewhere in the Gulf, markets that stayed open have recovered some earlier losses. Saudi Arabia’s main index was up 1.7%, regaining most of the ground lost since the war began. Brookfield added its name to the list of big investors saying the conflict hadn’t impacted its appetite for investing in the region.
