Damak Heights real estate development in Dubai Marina, Dubai, United Arab Emirates on Friday, February 20, 2026.
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Shares listed in Dubai and Abu Dhabi fell on Wednesday as UAE indices reopened after a two-day shutdown following Iranian drone and missile attacks on the nation.
Dubai’s benchmark index last traded 4.9% lower, on track for its worst day since May 2022. Abu Dhabi’s main index was down more than 3%, on track for its sharpest intraday decline since August, while the Nasdaq UAE 20 was down 4.3%.
State-owned bank Emirates NBD, down 5.2%, led losses in Dubai, while Abu Dhabi’s Al Buhaira National Insurance Company and Umm Al Qaiwain General Investments led losses of 9.6% and 8.7% respectively.
Ahead of the opening, both exchanges said they would temporarily adjust their lower price limit limits for securities to -5%.
Over the weekend, Iran launched a wave of missile and drone attacks on the UAE in retaliation for US-Israeli strikes that killed Supreme Leader Ayatollah Ali Khamenei. Iran’s strikes on the UAE hit civilian and commercial areas, including Dubai’s international airport, hotels and Amazon Data centers are getting damaged.
The closure of airspace around the UAE led to thousands of flight cancellations following the strike. Budget airline Air Arabia last saw business down 5%.
In a note on Tuesday, Citi analysts said they believe an escalation of the Middle East conflict “could have a profound and potentially long-lasting impact on the MENA region.”
Dubai’s Emaar and Abu Dhabi real estate developer Aldar are at risk of taking a hit to per-share growth, he said, while lenders NBK and ENBD are the biggest downside risks in the banking space.
“The valuation impact could change (and be more severe) as stocks are derated by an increase in the perceived equity risk premium,” analysts at Citi said.
“For real estate developers, sales may decline as property prices and demand for properties decline, immediate revenue may be less severely affected by the current situation (revenue is based on conversion of backlog of sales already made).
“However, the perceived risk premium for MENA stocks (eg those better owned by foreign shareholders or seen as relatively undervalued) may increase materially.”
Wednesday’s sell-off in the Gulf follows days of losses in stock indices across the globe.
Wednesday morning saw a resumption of selling-off in Asia, while European stocks opened in positive territory, snapping two consecutive days of broad losses in the region. US stock futures opened negative after all three major averages ended Tuesday’s session in the red.
