Dubai and Abu Dhabi Stock Markets Take $120 Billion Hit from Iran Conflict

Dubai and Abu Dhabi Stock Markets Experience Significant Decline Amid US-Israel War on Iran

The United Arab Emirates’ financial markets have seen substantial losses since the start of the US-Israel war on Iran. According to recent data, Dubai’s stock market has lost approximately $120 billion in value, with its benchmark index plummeting by around 16 percent. Abu Dhabi’s benchmark index has also declined significantly, dropping about 9 percent.

In contrast, financial markets in Qatar and Bahrain have experienced losses of around 4 percent and 7 percent, respectively. Meanwhile, exchanges in Saudi Arabia and Oman have seen gains. On Wall Street, the S&P 500 index has dropped by approximately 7 percent over the same period.

The conflict has had a notable impact on Dubai’s standing as a regional travel hub, with tens of thousands of flights cancelled due to the war. Tourism and travel accounted for around $70 billion in the UAE economy last year, contributing 13 percent to gross domestic product (GDP).

Experts have offered varying assessments of the situation. Haytham Aoun, an assistant professor of finance at the American University in Dubai, described the decline as a “temporary shock” rather than evidence of structural economic damage. Burdin Hickok, a professor at New York University’s School of Professional Studies, noted that the fundamental attractiveness of both stock markets is not changing.

The UAE has invested heavily in financial services as part of its economic diversification efforts and now ranks among the top capital markets in the Middle East. The value of UAE-listed stocks surpassed $1 trillion for the first time in 2024, second only to Saudi Arabia’s $2.5 trillion market in the region.

Source: Al Jazeera