UAE Equities Slip On Iran’s Retaliation Warning On Gulf Energy, Water Sites
Adedokun Waliyu
2 min read
Stock markets in the United Arab Emirates tumbled on Monday after Iran warned it could target energy and water infrastructure across the Gulf if U.S. President Donald Trump carries out his threat to strike the country’s electricity grid.
After Gulf markets closed, world stocks rallied after Trump said he would order the U.S. military to postpone any strikes against Iranian power plants and energy infrastructure.
Trump on Saturday had threatened to “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours.
Dubai’s main share index (.DFMGI), opens new tab dropped 3% on Monday, led by a decline in heavyweight real estate and telecom stocks.
Blue-chip developer Emaar Properties (EMAR.DU), opens new tab slumped 4.6%, while telecom operator Emirates Integrated Telecommunications (DU.DU), opens new tab fell 4.5%.
Top lender Emirates NBD Bank (ENBD.DU), opens new tab and low cost carrier Air Arabia both dropped 4.9%.
Abu Dhabi’s benchmark index (.FTFADGI), opens new tab slipped 1.5% with real estate giant Aldar properties (ALDAR.AD), opens new tab and biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab falling 5% each.
The Abu Dhabi-listed water and Electricity firm Abu Dhabi National Energy Company (better known as TAQA) (TAQA.AD), opens new tab declined 4.8%.
Heightened uncertainty fuelled risk aversion, triggering broad declines across most sectors as heavyweight stocks dragged on the overall market, said Joseph Dahrieh, managing director at Tickmill.
“Firms in the banking, real estate, and other sectors continue to maintain strong financial positions, leaving the market well-placed for a recovery once risk aversion fades and investor appetite for risk begins to improve,” he said.
ADNOC Gas (ADNOCGAS.AD), opens new tab settled 1.5% lower after the firm said it made temporary adjustments to its production of liquefied natural gas and export-traded liquids in response to ongoing shipping disruption in the Strait of Hormuz.
“Operations are continuing safely across ADNOC Gas plc’s asset base,” ADNOC Gas said. “Following debris falling near certain facilities, inspections confirmed no injuries and no impact to core processing integrity.”
The Dubai index has now fallen 11% year-to-date, while Abu Dhabi’s has declined 5.7%, according to LSEG data.
