Stock markets in the United Arab Emirates fell in early trade on Friday as Iran’s continued attacks on multiple targets across the Middle East heightened fears of a prolonged regional conflict and unsettled investor sentiment.
Investor caution intensified as the war in the Middle East approached the two-week mark, with heavy exchanges of drone and missile strikes across the region.
US President Donald Trump on Thursday sharply criticized Iran’s leadership, while Iran’s new Supreme Leader Mojtaba Khamenei, in his first public comments, said Tehran would keep the Strait of Hormuz closed and urged neighbouring countries to shut US bases on their territory or risk being targeted.
The escalation has raised concerns over disruption to regional trade and energy flows, particularly through the Strait of Hormuz, a vital shipping lane for global oil supplies.
Dubai’s main share index fell 1% with most of its constituents in negative territory, led by losses in financial and real estate stocks.
Blue-chip developer Emaar Properties slid 1.7%, while top lender Emirates NBD dropped 4%.
In Dubai, debris from what authorities said was a successful interception caused minor damage to the facade of a building in the city centre, the emirate’s media office said early on Friday, adding that no injuries were reported.
The office did not specify the location, though a witness said the damage occurred near the Dubai International Financial Centre.
In Abu Dhabi, the stock index slipped 1.4% with broad-based declines.
First Abu Dhabi Bank, the UAE’s largest lender, fell 3.8%, while Aldar Properties lost 2.5%.
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