Stock markets in the UAE experienced a major decline on March 4. This drop in market shares follows the ongoing conflict between the US and Iran. The series of attacks by the US and Israel on Iran, along with Tehran's retaliatory strikes in Arab nations, has led to instability in global energy and financial markets.
According to recent news, on the first day of trading, the standard indexes in Abu Dhabi and Dubai fell further. This has been happening since the conflict in the Middle East began on February 28, 2026.
Apart from the above-mentioned loss, there were several other impacts on the trading market. The key highlights include:
Emaar Properties, which is one of the largest listed developers in Dubai, was among the biggest losers. The company saw a 4.93 per cent loss during early trade.
Dubai's top-lender Emirates NBD, saw a loss of 5 per cent
Dubai Islamic Bank, which is one of the UAE’s biggest Sharia-compliant lenders, dropped by 4.94 per cent.
One of the main equities of the Dubai financial market, the DFM General Index closed the session at 4.71 per cent lower on March 4, 2026. “Equity markets globally sold off sharply, with significant declines across US, European, Asian, and regional UAE markets,” said Edward Bell, acting group head of research and chief economist at Emirates NBD.
Currently, the combined market capitalisation of the UAE exchanges stands at $1.1 trillion. “This is the 19th highest in the world, and carries about 1.4 per cent weight on MSCI’s emerging markets benchmark,” a Bloomberg report explains.
Furthermore, the suspension was another precautionary measure taken by authorities amid Iran's unprecedented strikes on the UAE. Tehran says it took place in response to the US and Israeli attacks that began on February 28, 2026.
The back-to-back bombing attacks in Iran not only shook the energy markets but also made an impact on other global equities. The constant instability and uncertainty are creating shock waves across the global economy. This is because traders are now considering the future impacts of the extended conflicts in the region. Thus, eventually leading to slower economic growth and global inflation.