UAE Markets Ease Post-Closure; Fundamentals Stay Strong

Equities in the United Arab Emirates are trading slightly lower on Wednesday, following a two-day closure aimed at protecting the Gulf state’s key markets amid the regional geopolitical developments. The DFMGI is trading around AED 6,200, looking to recapture its 100-day EMA at AED 6,281. Meanwhile, the FTSE ADX General Index is holding around AED 10,150, aiming for a close above its 100-day EMA at AED 10,230. This temporary dip is likely to open up some interesting opportunities in the UAE’s accelerating long-term equity story.

The UAE regulator (CMA) said that Dubai’s stock exchange is implementing a temporary adjustment to the limit down threshold at 5% to support orderly market conditions, and this measure will be reviewed on an ongoing basis in coordination with regulators. UAE’s economic strength is evident from S&P Global’s PMI for the country, which rose to 55 in February, the highest reading in a year. New orders are stable, and employment rose vs the prior month (highest reading since Nov. 2025). Non-oil private-sector expansion also strengthened, with business activity rising at its fastest pace since April 2024 and output increasing amid strong intake of new work. This growth was logged in the construction, real estate, logistics, and technology sectors, which point to strong underlying fundamentals. In terms of opportunities, UAE banks are very resilient, given their comfortable balance sheet positions and their ability to handle any short-term corrections.

Volatility is likely to be elevated today, with the reading inching towards 20. For DFMGI and the FTSE ADX General Index , a rebound is expected from the 200-day EMA at AED 6,010 and AED 10,060 (given the indices reach those levels), and both look to close above their 100-day EMA.