Dubai stocks hit 11-month low after Iran strike on airport

Dubai’s main stock index fell to an 11-month low on Monday after an Iranian strike on Dubai airport deepened investor concerns about the escalating regional conflict, triggering broad selling across UAE markets.

The benchmark index of the Dubai Financial Market dropped 3.5% to 5,235 points, its lowest close since April 2025. The Abu Dhabi Securities Exchange also declined during trading before recovering some losses, ending the day down 0.2% after late buying activity.

The latest market decline follows the escalation of hostilities after the United States and Israel launched strikes on Iran on February 28. Since then, Dubai’s benchmark has fallen about 19.5%, while Abu Dhabi’s index has dropped around 9.5%.

Iran has also closed the Strait of Hormuz, a key route through which roughly one-fifth of global oil supply normally passes, and has carried out attacks on civilian and military targets in countries hosting US forces, including the UAE, Qatar and Bahrain.

The airport strike added to concerns that the conflict could disrupt travel, trade and economic activity in the UAE, prompting investors to reduce exposure to sectors tied to tourism, property and banking.

Selling pressure was strongest in real estate and financial stocks. According to sources, shares in Emaar Properties fell 4.9%, while Aldar Properties declined 3.5%. According to market calculations, the two developers have lost about $21 billion in combined market value this month as investors reassess demand for property in the region.

Banking stocks also weakened. Emirates NBD dropped 1.7%, Dubai Islamic Bank fell 3%, and Abu Dhabi Islamic Bank declined 4.9%. Other Gulf markets showed more moderate movements, with Saudi Arabia’s index on the Saudi Exchange rising 0.3% by mid-session trading.

Saudi Arabia may be less affected by the closure of the Strait of Hormuz because the state oil company Saudi Aramco can export up to two-thirds of its crude through pipelines to the Red Sea.

In contrast, Qatar, Kuwait and Bahrain rely heavily on the waterway for oil exports. According to Goldman Sachs estimates, if the conflict continues at current levels until the end of April, oil output could decline 12% in Saudi Arabia and 16% in the UAE, while Qatar, Bahrain and Kuwait could see production drop by more than 25%.

The weaker outlook has also weighed on other Gulf markets. Qatar’s stock index fell 1.2% to a nine-month low, while Kuwait’s market slipped 0.4%.