Source: Fortune
Summary
The United Arab Emirates has announced that its two main stock exchanges, Abu Dhabi Securities Exchange and Dubai Financial Market, will be closed for two days due to ongoing missile and drone attacks from Iran. The closures are unusual for the country, but not unprecedented in times of uncertainty. The UAE’s economy and status as a stable financial hub are under threat. The stock exchanges’ market capitalization stands at $1.1 trillion, making it the 19th largest in the world.
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The numbers tell one story.
The UAE’s stock exchanges are taking a cautious approach, closing for two days to avoid a possible meltdown. The closures are a sign of the country’s concern about the impact of the ongoing attacks on its economy. The UAE’s developers, such as Emaar, and banks with greater cyclical exposure are vulnerable. The market closures are not uncommon in times of uncertainty, with Turkey, Russia, and Greece having suspended trading in the past. The UAE’s move is a attempt to stabilize the market and prevent a panic sell-off.
The country is taking a page from the playbook of other nations that have faced similar situations.
Author: Evan Null
