UAE Closes Stock Exchanges Amid Uncertainty Over Market Regulations

UAE Closes Main Stock Exchanges Amid Ongoing Conflict

The United Arab Emirates has closed its main stock exchanges in Dubai and Abu Dhabi following recent attacks on Iran by the US and Israel. The Capital Markets Authority announced that the Abu Dhabi Securities Exchange and Dubai Financial Market would remain closed on Monday and Tuesday.

The UAE’s financial regulator stated that it would continue to monitor developments in the region and assess the situation on an ongoing basis, taking any further measures as necessary. No explanation was provided for the decision, citing its “supervisory and regulatory role” in managing the country’s financial markets.

This move is not unprecedented, as other countries have closed their stock markets during periods of major turmoil. In 2022, Russia shut the Moscow Exchange for nearly a month following the invasion of Ukraine. Similarly, Israel modified hours of trading during conflicts in the past.

The closure of the UAE’s main stock exchanges comes amid significant losses in global stock markets and rising oil prices. Saudi Arabia’s benchmark Tadawul All Share Index fell over 4% on Sunday, while Egypt’s EGX 30 dropped about 2.5%. Major Asian stock markets also closed lower, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index down about 1.4% and 2.2%, respectively.

Investors have expressed concerns about the impact of the closure on liquidity and investor confidence in the Dubai markets. “Investors don’t like uncertainty, and at times of market stress, liquidity is most important,” said Burdin Hickok, a professor at New York University’s School of Professional Studies. The UAE has closed its stock exchanges before, but not due to regional conflict.

Source: Al Jazeera