Dubai leads Gulf stock market advance as investors reassess regional risks

Stock markets in the Gulf largely ended in positive territory on Tuesday, with Dubai leading the advance, as investors looked beyond regional geopolitical concerns and reassessed their broader outlook.

Dubai’s main share index reversed early losses to close 4.1% higher, with the index narrowing its losses since the start of the conflict to 15.3%.

Iran renewed its attacks on the United Arab Emirates, as the U.S.-Israeli war on Iran entered its third week with no signs of easing. The Strait of Hormuz remained largely closed, pushing oil prices about 3% higher and deepening concerns over inflation.

The fresh strikes led to a temporary shutdown of airspace in the UAE. A drone also hit an oil facility in Fujairah, a key port for Emirati oil exports, for a second consecutive day, while operations at the Shah gas field remained suspended following a drone attack.

U.S. President Donald Trump had said on Monday he was surprised by Iran’s retaliatory attacks on neighboring countries, including Qatar, Saudi Arabia, the UAE, Bahrain, and Kuwait.

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But Gulf stock markets rebounded on Tuesday on strong real estate gains. Emaar Properties and Emaar Development advanced after S&P reaffirmed the sector’s resilience despite geopolitical tensions, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

In Abu Dhabi, the index gained 1%, with Aldar Properties climbing 6%.

Earlier this month, the Dubai and Abu Dhabi exchanges introduced a temporary 5% daily downside limit on listed securities and suspended trading on March 2 and March 3, as part of broader measures to curb volatility and maintain orderly market conditions.

According to Takieddine, improving global sentiment, solid local fundamentals and hopes of a Strait of Hormuz resolution could support further gains in both markets.

“However, a full recovery will largely depend on the de-escalation of geopolitical tensions in the region,” he said.

Qatar’s benchmark index rose 0.6%, while Oman’s gained 0.2%.

Bahrain’s index edged up 0.2%, whereas Boursa Kuwait slipped 0.6%.

Saudi Arabia’s stock market was closed for the Eid holidays.

Outside the Gulf, Egypt’s blue-chip index jumped 1.9%, with Commercial International Bank advancing 2%.