Stock markets in the United Arab Emirates declined in early trading on Friday as continued Iranian attacks on several targets across the Middle East heightened concerns of a prolonged regional conflict, weighing on investor sentiment.
Market caution increased as the conflict in the Middle East neared its second week, with both sides exchanging heavy drone and missile strikes across the region.
US President Donald Trump on Thursday sharply criticized Iran’s leadership, while Iran’s new Supreme Leader Mojtaba Khamenei, in his first public remarks, said Tehran would keep the Strait of Hormuz closed and called on neighbouring countries to shut down US bases on their soil or risk becoming targets.
The rising tensions have raised worries about possible disruptions to regional trade and energy supplies, particularly through the Strait of Hormuz, a crucial shipping route for global oil shipments.
Dubai’s main share index dropped 1%, with most listed companies trading in negative territory, led by declines in financial and real estate stocks.
Blue-chip developer Emaar Properties fell 1.7%, while the UAE’s largest bank by assets in Dubai, Emirates NBD, declined 4%.
Earlier on Friday, Dubai authorities reported that debris from what they described as a successful interception caused minor damage to the facade of a building in the city centre. The emirate’s media office said no injuries were reported.
Officials did not disclose the exact location, although a witness said the incident occurred near the Dubai International Financial Centre.
Meanwhile, Abu Dhabi’s main stock index also fell 1.4%, reflecting broad-based losses.
First Abu Dhabi Bank, the country’s largest lender, dropped 3.8%, while Aldar Properties declined 2.5%.
