UAE equities fell sharply in early trading following the resumption of operations after a three-day suspension linked to escalating tensions with Iran. The benchmark Abu Dhabi Securities Exchange General Index dropped 3.2%, while Dubai's DFM General Index declined 2.9%, reflecting investor anxiety over regional stability and energy security.
- ADXGI dropped 3.2% to 5,147.63 after three-day closure due to Iran-related tensions
- DFMGI fell 2.9% to 2,810.15, with defense and infrastructure sectors leading losses
- Brent crude (CL=F) rose 4.1% to $98.70 per barrel on supply disruption fears
- VIX climbed to 28.3, its highest since November 2024, reflecting rising risk sentiment
- U.S. S&P 500 futures (ES=F) declined 0.8% in pre-market trading
- EDIC and GIB shares fell 5.6% and 4.3% respectively amid defense spending speculation
Markets in the United Arab Emirates reopened on March 4, 2026, after a temporary closure triggered by heightened tensions between Iran and regional allies, with trading volumes below average amid cautious sentiment. The Abu Dhabi Securities Exchange General Index (ADXGI) lost 3.2% in the first hour of trading, closing at 5,147.63, while the Dubai Financial Market General Index (DFMGI) dropped 2.9% to 2,810.15, led by declines in energy and defense-related stocks. The sell-off follows a surge in global oil volatility, with Brent crude futures (CL=F) rising 4.1% to $98.70 per barrel, driven by concerns over potential disruptions to supply routes through the Strait of Hormuz. The CBOE Volatility Index (^VIX) spiked to 28.3, its highest level since November 2024, signaling increased risk aversion among global investors. U.S. S&P 500 futures (ES=F) also dipped 0.8% in pre-market trading, indicating broad-based market unease. Defense and infrastructure stocks were hit hardest, with Emirates Defense Industries Company (EDIC) falling 5.6% and Gulf International Bank (GIB) shedding 4.3% amid speculation of increased military spending and tighter capital flows. The UAE's central bank has maintained liquidity support, but market participants remain focused on de-escalation efforts and the potential for broader regional conflict. The developments underscore the growing sensitivity of emerging markets to geopolitical shocks, particularly in energy-rich Gulf states. As energy flows and military posturing remain in focus, analysts warn of sustained volatility in both equity and commodity markets until a diplomatic resolution emerges.