UAE stock markets started the week under pressure, with both Dubai and Abu Dhabi exchanges falling by more than one per cent in early Monday trading. Investor sentiment weakened after the UAE said it had intercepted two Iranian drones, while a third drone reportedly struck near the Barakah nuclear power plant on Sunday. The incident added to regional uncertainty and appeared to weigh on market activity at the start of the trading week.
Dubai Financial Market Drops Over 1%
The Dubai Financial Market fell 1.17 per cent in early trade, reaching 5,639.7 points. Several major listed companies were trading lower, including Amlak, Tecom, Takaful, Shuaa, Emaar Properties, and Dubai Investments Company. Most stocks on the market opened in negative territory, reflecting a cautious mood among investors.
However, a small number of companies managed to trade higher. National Industries Group Holding and Dubai Electricity and Water Authority were among the stocks showing positive movement.
Abu Dhabi Exchange Also Declines
The Abu Dhabi Securities Exchange also moved lower, dropping 1.17 per cent to 9,559 points in early trading. Losses were led by Insurance House, which fell 4.66 per cent, followed by 2PointZero, down 3.96 per cent, and Burjeel, which declined 3.8 per cent.
Despite the wider market weakness, some stocks remained in positive territory, including Investcorp Capital, Agility, and Gulf Medical Projects Company.
Regional Developments Weigh on Investor Mood
The market decline came as regional geopolitical concerns continued to affect investor confidence. In addition to the drone incident near Barakah, comments from US President Donald Trump and Iranian Foreign Minister Abbas Araghchi added to uncertainty over efforts to reduce tensions around maritime security near the Strait of Hormuz.
Trump said on Sunday that he was losing patience with Iran. He also said he had agreed with Chinese President Xi Jinping that Tehran should not be allowed to obtain a nuclear weapon and should reopen the strait.
Cautious Start to the Trading Week
The early losses in both Dubai and Abu Dhabi suggest that investors are closely watching regional security developments and political signals from major international powers. While some individual stocks remained resilient, the broader market opened with a defensive tone as traders assessed the potential impact of rising tensions on regional stability, energy routes and investor confidence.