The UAE markets opened sharply lower on Monday as rising regional tensions unsettled investors. Traders reacted quickly to security developments and statements from global leaders. As a result, both Dubai and Abu Dhabi indices recorded notable losses in early trading.
The UAE markets came under pressure after authorities confirmed drone interceptions on Sunday. Officials said two drones were stopped successfully, while another landed near the Barakah nuclear facility. Consequently, investor sentiment weakened across several sectors at the start of the week.
The Dubai Financial Market dropped 1.17 percent to 5,639.7 points during morning trading. Several major stocks recorded losses as investors shifted toward cautious positions. Property, insurance, and investment shares saw the sharpest declines.
Amlak Finance, Tecom Group, and Takaful Emirates traded lower in the opening hours. In addition, Shuaa Capital and Emaar Properties also fell as uncertainty increased. Dubai Investments Company remained under pressure throughout the session.
However, a few companies avoided the broader downturn. National Industries Group Holding posted gains despite overall market weakness. Dubai Electricity and Water Authority also traded in positive territory during the morning session.
Meanwhile, the Abu Dhabi Securities Exchange also recorded losses in early trade. The benchmark index fell 1.17 percent to 9,559 points as selling activity increased. Investors continued to monitor regional developments and adjusted portfolios cautiously.
Insurance House led losses in Abu Dhabi after its shares dropped more than four percent. In addition, 2PointZero and Burjeel Holdings also declined significantly. Financial and healthcare stocks remained under pressure as uncertainty spread.
Still, several companies moved higher despite the negative sentiment. Investcorp Capital recorded gains as selective buying emerged. Agility and Gulf Medical Projects Company also traded positively on Monday morning.
In addition, political comments from international leaders added further pressure on financial markets. Statements on shipping security near the Strait of Hormuz raised new concerns among investors. Market participants worried about possible disruptions to regional trade routes.
The US president warned that patience with Iran was running out. He also stressed the importance of keeping vital shipping lanes open. Meanwhile, Iranian officials continued discussions on regional security and diplomatic tensions.
Analysts said UAE markets may remain volatile if geopolitical concerns continue. Investors are expected to track regional developments and oil price movements closely. These factors will likely guide market direction in the coming days.
Overall, UAE markets remain under short-term pressure as uncertainty affects investor confidence. However, traders expect selective opportunities in defensive and utility stocks. Market activity is likely to stay cautious until regional tensions ease.
