The ongoing conflict involving the United States and Israel against Iran has inflicted significant economic damage on Gulf financial markets, with stock exchanges in Dubai and Abu Dhabi losing roughly $120 billion in combined market value, according to Al Jazeera.
Since the war began on 28 February 2026, Dubai’s benchmark index has fallen by about 16 percent, while Abu Dhabi’s main index has declined around 9 percent, placing the UAE’s markets among the hardest hit globally amid broader regional volatility.
Other Gulf exchanges have also felt the impact, with markets in Qatar and Bahrain retreating, though some, like those in Saudi Arabia and Oman, have recorded gains amid mixed investor sentiment.
Analysts attribute the downturn to heightened geopolitical risk, disruptions to travel and trade, and concerns about prolonged instability in the region’s energy and financial sectors. Tens of thousands of flights have been canceled, further denting confidence in the UAE’s role as a major travel and business hub.
The losses underline the broader economic fallout of the Iran war, which has disrupted key supply routes and contributed to volatility in global markets.