Dubai Stocks Plummet, Entering Bear Market Territory Amid Ongoing Iran Conflict

Dubai Stocks Plummet into Bear-Market Territory

The Dubai Financial Market General Index fell as much as 3.2% on Monday, down 21% from its February high, indicating a bear market according to 20% decline definition. This recent selloff was sparked by the ongoing US-Israel strikes against Iran, which has responded with attacks on Gulf cities, disrupting travel and escalating threats to shipping, driving oil prices higher.

Emaar Properties PJSC and Emaar Development PJSC have been the biggest decliners since the conflict started at the end of February, falling 34% and 35% respectively. Before the outbreak of hostilities, Dubai stocks had notched a 300% rally over nearly six years, powered by growing consumption, tourism, a property boom, and financial services.

The ongoing conflict is threatening Dubai's carefully cultivated image of a safe haven in an often volatile region. Emirates resumed limited services at Dubai's main international airport on Monday after a drone incident caused a suspension of flights hours earlier. The incident was the latest in a series of disruptions, including a drone incident that resulted in injuries to four people on Wednesday.

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The attacks, along with missile and drone interceptions happening across Dubai, have resulted in frequent delays and lengthened flight times as aircraft circle the skies outside Dubai International Airport on a daily basis.

Key Statistics:

• Dubai Financial Market General Index: down 21% from its February high
• Emaar Properties PJSC: fell 34% since the conflict started
• Emaar Development PJSC: fell 35% since the conflict started
• Dubai stocks: notched a 300% rally over nearly six years before the conflict
• Oil prices: driven higher by escalating threats to shipping