UAE Markets Fall as Global Trade War Fears Shake Investor Confidence

Post by: Bandan Preet

Photo: Reuters

Stock markets in the United Arab Emirates (UAE) fell on Friday, following a drop in oil prices. The decline came after concerns about a growing global trade war resurfaced. These worries were triggered when U.S. President Donald Trump announced higher tariffs on imports from Canada, Mexico, and China.

On Thursday, Trump stated that a 25% duty on Canadian and Mexican imports would begin on March 4, earlier than the April 2 date he had mentioned before. He also confirmed that an additional 10% tariff would be applied to goods coming from China. This news affected investor confidence and weighed on the financial markets.

Oil prices, which are a key factor influencing the Gulf’s economy, dropped by more than 1%. By 11:03 GMT, crude oil was priced at $73.16 per barrel. Lower oil prices often hurt market performance in the region, as many companies depend on oil revenues.

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Dubai’s main stock market index fell by 0.8%, ending a three-day winning streak. The decline was mainly driven by a 2.5% drop in shares of Emaar Properties, one of Dubai’s largest real estate developers. Dubai Electricity and Water Authority (DEWA), the state-run utility provider, also declined by 1.9%.

However, not all stocks performed poorly. Mashreqbank, the UAE’s oldest private bank, gained 0.8% after its shareholders approved a full-year cash dividend of AED 21.1 per share. Despite the overall decline, the Dubai stock index still managed to rise by 2.7% in February, marking its ninth straight month of gains. Earlier in the month, the index had reached its highest level in nearly 11 years.

Meanwhile, Abu Dhabi’s stock market also experienced losses. The main index fell by 0.5%, extending its losing streak to a second day. Two major banks, First Abu Dhabi Bank and Abu Dhabi Commercial Bank, saw their shares drop by 2.7% and 1.2%, respectively.

In another development, AD Ports Group, a government-controlled port operator in Abu Dhabi, signed an agreement with Pakistan’s Board of Investment. The two parties plan to explore the possibility of developing an industrial zone near Karachi Port and Port Qasim. Despite this news, AD Ports' shares still dropped by 2.1% at the end of the trading session.

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