UAE stocks fall but investors spot openings in utilities

• UAE stock markets down again
• Late buying demand in Dewa
• Saudi index closed higher

UAE stock markets slid for a second straight session on Thursday, although sustained late buying demand reduced overall declines and may indicate that investor confidence is returning.

Regulators had shut bourses in Dubai and Abu Dhabi on Monday and Tuesday in response to the ongoing US-Israeli war on Iran which began last Saturday. Tehran has retaliated by striking military and civilian infrastructure in Gulf countries in which US forces are located, causing widespread disruption to the region’s shipping, aviation and energy sectors in particular.

Dubai’s index fell 1.3 percent to 6,115 points, having slumped to an intra-day low of 5,941 points in the first few minutes of trading, before rebounding somewhat.

Thursday’s close takes its losses to 6 percent since trading resumed on March 4.

Stocks with high foreign ownership levels endured similar selling pressure as Tuesday, dragging the index lower, said Marwan Shurrab, chief commercial officer at xCube, a market maker for the Dubai bourse and the No 7 broker by traded value in February.

International investors are reducing their holdings of UAE equities, said Shurrab. They were net buyers of AED3.2 billion ($872 million) of Dubai stocks in January and February combined, bourse data shows.

Dubai government-run carparking platform Parkin fell the maximum 5 percent. Emirates NBD, Dubai’s top bank by assets, fell 4.9 percent. So too did market bellwether Emaar Properties, sister company Emaar Development and low-cost airline Air Arabia.

However, buying demand emerged for stocks in companies that are “less prone to valuation risk at this stage”, Shurrab said.

These include Dubai Electricity and Water (Dewa), which rose 5.3 percent, and Emirates Central Cooling Systems (Empower), which climbed 3.5 percent. Such companies are perceived as defensive, with predictable earnings usually unaffected by economic or geopolitical uncertainty.

“Utilities did pretty well. At the beginning of any incident (such as the ongoing Iran war) there will be pressure on the market, then buying opportunities start to arise in certain stocks that are still fundamentally sound,” Shurrab said.

“Volatility will remain for a while. I’m not expecting a V-shaped recovery at this stage.”

Dubai’s market turnover was AED1.4 billion, up by nearly three-fifths versus Wednesday, while the number of shares changing hands more than doubled. Activity had dwindled due to the 5 percent downward stock movement limit, imposed temporarily, with few buyers willing to trade at such levels.

Thursday’s marked increase in volumes – and therefore turnover – indicates the market is finding its equilibrium and that bargain hunters have sought to accumulate stocks at lower prices following the steep sell-off.

“Turnover today was healthy,” Shurrab said. “It’s very normal to now have profit-taking with the current (war) situation.”

The Dubai and Abu Dhabi benchmarks had gained 7.5 and 4.4 percent respectively in the first two months of 2026, outperforming equity measures in Saudi Arabia, Qatar and Kuwait.

More news on the Iran war

• How Aramco can keep oil flowing during Iran conflict
• Iran conflict sends UAE developer bonds tumbling
• Mena startup investors urged to hold nerve through Iran conflict

Abu Dhabi’s index ended 2 percent lower at 10,045 points on Wednesday.

Abu Dhabi Commercial Bank, whose mobile banking app was inoperable for 48 hours until Tuesday, fell 4.7 percent and was the most traded stock. Aldar Properties dropped 5 percent to a five-week low.

E&, commonly known as Etisalat and the UAE’s former telecom monopoly, rose 3.4 percent, while Adnoc Gas climbed 1.5 percent.

Saudi Arabia’s index increased 0.8 percent, its third straight gain as all but two sub-sectors advanced.

Brent crude rose 3.1 percent to $84 a barrel as of 14:27 GMT, up about $11 this week as Iran effectively blocks nearly all tanker traffic through the Strait of Hormuz.

About one-fifth of global oil and liquefied natural gas supplies transit the narrow channel which marks the entrance to the Gulf.

Saudi Arabia can re-route most of its crude exports to depart from ports on the Red Sea, rather than the Gulf, said Christopher Haines, head of oil at London’s Energy Aspects. As such, Saudi Arabia should benefit from higher oil prices.