The Abu Dhabi Securities Exchange and the Dubai Financial Market will remain shut on March 2 and March 3, authorities announced, as the United Arab Emirates grapples with escalating Middle East tensions.
The decision was confirmed by the UAE Capital Market Authority, which said the temporary suspension was aimed at stabilising markets amid uncertainty following repeated missile and drone attacks on the Gulf nation.
“The Authority will continue to monitor developments in the region and assess the situation on an ongoing basis, taking any further measures as necessary,” it added.
Rare move
Market shutdowns outside pre-scheduled holidays are highly unusual in the UAE. Typically, trading is suspended only during periods of national mourning. One such instance followed the death of President Sheikh Khalifa bin Zayed Al Nahyan in May 2022, when bourses were temporarily closed.
That makes this week’s decision stand out. However, globally, temporary market closures during crises are not without precedent.
In 2023, Turkey suspended trading for a week after a devastating earthquake, with markets rallying when they reopened. In 2022, Russia halted trading for about a month following its invasion of Ukraine.
Uncertainty across financial hub
The closures come after Dubai and Abu Dhabi were targeted by hundreds of Iranian missiles and drones since Saturday morning. The strikes are part of Iran’s retaliation following major US and Israeli operations in its soil, that killed the Supreme Leader Ayatollah Ali Khamenei and several other top leadership.
While most of the projectiles were intercepted, officials have reported casualties and damage across multiple areas in both cities. The developments have unsettled residents and raised concerns about the country’s economy and its reputation as a stable financial and tourism hub.
For a nation that has long promoted itself as a safe and business-friendly destination, the sudden escalation has marked a dramatic shift.
Casualties in UAE so far
According to the UAE defence ministry, three people have died in the attacks so far, including nationals of Bangladesh, Nepal and Pakistan. An Indian was among 58 foreign workers injured since Saturday.
Fires were reported at a five-star resort, and there were disruptions at Abu Dhabi airport. Authorities have not released further operational details.
The UAE, known for its skyline and global connectivity, has long positioned itself as a sunny, tax-free haven in a volatile region. That image has come under strain amid the latest hostilities.
“This is Dubai’s ultimate nightmare, as its very essence depended on being a safe oasis in a troubled region,” wrote Cinzia Bianco, Persian Gulf expert at the european council on foreign relations, on X. “There might be a way to be resilient, but there is no going back.”
