UAE stocks drop amid uncertainty over tariffs and market concerns

Photo: Reuters

Stock markets in the United Arab Emirates (UAE) closed lower on Friday, following a drop in global markets. Investors were worried about the uncertainty surrounding U.S. tariff policies, which led to nervous trading.

European markets also took a hit, with stocks falling 0.7%. This marked a weekly loss after ten straight weeks of gains. Meanwhile, Japan’s Nikkei index dropped 2.2%, reaching its lowest level in six months.

On Thursday, U.S. President Donald Trump announced that the 25% tariffs on most goods from Canada and Mexico would be delayed until April 2. However, tariffs on steel and aluminum will still go into effect on March 12 as planned.

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Dubai’s Market Sees Biggest Loss in Three Months

Dubai’s main stock index fell by 1%, marking its biggest single-day loss in three months. Most stocks in the market ended in the red.

Dubai Islamic Bank, the largest Islamic lender in the region, dropped by 1.6%. Tecom Group, a well-known business park operator, lost 3%.

Talabat Holding, a major food delivery company in the Middle East, announced on Thursday that it had completed its purchase of Instashop from Delivery Hero SE. Despite this big move, Talabat’s stock still fell by 0.7% by the end of the day.

For the week, Dubai’s index recorded a total loss of 1.8%—its worst weekly drop since early October last year. Abu Dhabi’s market also declined by 1.2% over the week, according to data from LSEG.

Abu Dhabi Market Hits Eight-Week Low

Abu Dhabi’s stock index dropped by 0.9%, reaching its lowest level in eight weeks. Major real estate company Aldar Properties fell by 2.6%, while investment firm Multiply Group, owned by IHC, saw a 3.4% drop.

Among the major banks, First Abu Dhabi Bank and Abu Dhabi Commercial Bank also saw losses of 0.8% and 7.4%, respectively.

Financial expert Rania Gule, a senior market analyst at XS.com – MENA, explained that Abu Dhabi’s market decline was due to ongoing trade tensions and a drop in oil prices during the week.

Oil Prices Move Higher

Despite the stock market downturn, oil prices saw an increase. Brent crude, a key benchmark for oil prices, rose by 1.7%, reaching $70.61 per barrel by midday (GMT). Since oil plays a major role in the Gulf economies, this slight recovery provided some relief.