{"id":112015,"date":"2026-03-02T00:00:00","date_gmt":"2026-03-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=112015"},"modified":"2026-03-02T15:20:53","modified_gmt":"2026-03-02T15:20:53","slug":"adx-dfm-are-closed-today-and-tomorrow-as-regulatory-body-assesses-the-situation","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/03\/02\/adx-dfm-are-closed-today-and-tomorrow-as-regulatory-body-assesses-the-situation\/","title":{"rendered":"ADX, DFM are closed today and tomorrow as regulatory body assesses the situation"},"content":{"rendered":"

It\u2019s early to talk about fallout and what the attacks mean for business<\/strong>, but we have thoughts, from capital markets to tourism and the wider economy. <\/p>\n

UP FIRST- The stock market. The ADX and DFM are both <\/strong>closed today and tomorrow:<\/strong> \u201cThe [UAE Capital Market Authority] will continue to monitor developments in the region and assess the situation on an ongoing basis, taking any further measures as necessary,\u201d state news agency Wam<\/a> reports. <\/p>\n

You can expect to see some \u201corderly repricing rather than a sharp, panic-driven gap <\/strong>down\u201d<\/strong> when markets do open, CFI Financial Market Analyst Christy Achkar told EnterpriseAM. While some expect a sea of red, Achkar argues that the UAE\u2019s unique market architecture \u2014 characterized by heavy institutional anchors and sovereign-linked entities \u2014 acts as a natural circuit breaker on extreme volatility.<\/p>\n

Unlike more retail-driven markets, the UAE\u2019s \u201cstrong institutional participation\u201d helps <\/strong>limit <\/strong>irrational selling. <\/strong>Plus, the geopolitical risk premium often comes with a silver lining for the Emirates: higher oil prices. \u201cFor the UAE, higher oil prices translate into stronger government revenues, improved fiscal surpluses, and greater system liquidity,\u201d Achkar said. This creates a cushion that supports public spending and maintains confidence even when headlines turn sour.<\/p>\n

IN CONTEXT- Saudi\u2019s Tadawul was down <\/strong>nearly 2.2% yesterday, while the EGX30 in Egypt was off 2.5% at the close. <\/p>\n

The sectors to watch: <\/strong>Expect \u201chigh-beta real estate and financial stocks\u201d to feel the initial heat. Banks and property names are sentiment-sensitive and often serve as the first exit point for investors reducing exposure to growth. Airlines, airports, and tourism look most exposed to cancellations, ins. costs, and confidence shock, Rawad Kassouf, Arqaam Capital head of ECM execution and syndicate, told us.<\/p>\n

The safe harbors: <\/strong>Defensive sectors like utilities and energy-related names should remain relatively stable, especially if crude prices remain elevated. Kassouf shared the same opinion, saying that \u201ctelecoms and regulated utilities are typically the closest defensives on stable cashflows and dividends, while energy producers offer oil leverage; however, their exports and critical infrastructure could be impacted.\u201d<\/p>\n

What\u2019s next: <\/strong>\u201cClarity matters more than valuation\u201d amid geopolitical tensions, Achkar said. Investors will likely adopt a wait-and-see approach, monitoring global futures and oil before deploying capital. <\/p>\n

Watch the first hour of trading after markets open:<\/strong> If the index recovers early losses on steady volume, it signals domestic liquidity is absorbing the shock. \u201cIf external conditions stabilize, selective dip-buying could emerge later in the session, supported by domestic liquidity,\u201d Achkar added. \u201cHowever, continued escalation would likely keep investors defensive and focused on reducing higher-beta exposure.\u201d <\/p>\n

BACKGROUND- UAE markets have had a good start to the year:<\/strong> The ADX closed last month up 1.7%, having gained 4.6% YTD, while DFM gained 1.1% in February and 7.5% YTD. Pundits say GCC markets could drop by 3-5%<\/a> if hostilities continue \u2014 the prospect of higher oil prices will likely be insufficient to calm investors\u2019 nerves as regional instability weighs heavier.<\/p>\n

The impact on the wider economy will take longer to assess: <\/strong>\u201cThe economic fallout from the attacks by the US and Israel on Iran [\u2026] will depend on how long the conflict lasts, the scale of Iranian retaliations and the spillovers to the oil market,\u201d Capital Economics Chief Emerging Markets Economist William Jackson said in a note<\/a> out just after the initial attacks on Iran began. <\/p>\n

What to watch: Aviation and tourism <\/p>\n

Perhaps the biggest negative impact for the UAE will be on tourism<\/strong>, a mainstay of the economy. The UAE has long been seen as a safe destination with a plethora of luxury attractions for high-net-worth individuals and others who want to take a break from cold winters and seek the sunny beaches of the UAE, especially this time of year. <\/p>\n

Widespread airspace closures and massive flight disruptions spread through the region <\/strong>and hit the UAE over the weekend.<\/strong> Iran, Israel, Iraq, Qatar, Bahrain, and Kuwait completely shut their skies to commercial traffic, while the UAE, Syria, and Oman severely restricted flights. <\/p>\n

The world\u2019s busiest airport, Dubai International Airport, sustained \u201cminor damage\u201d to a <\/strong>concourse<\/strong>, according to Dubai Media Office<\/a>, while videos circulated of smoke and fallen debris inside its Terminal 3 on Saturday night. Zayed International Airport in Abu Dhabi was also hit the same night, with one fatality reported and seven injuries.<\/p>\n

The airline situation: <\/strong><\/p>\n