Dubai: As the UAE returned to cautious normalcy on the fourth day of Iranian attacks, attention shifted to the capital markets, which are scheduled to reopen Wednesday after two days of closure.
Offices across Dubai and Abu Dhabi gradually began preparing to resume in-person work after missile attacks moved employees into remote operations, signalling resumption of activity in the country’s financial and business engines.
The UAE government during a press conference on Tuesday said the national carriers would operate 80 additional flights per day in the next phase with a capacity of 27,000 passengers. Minister of economy and tourism Abdulla bin Touq Al Marri said 60 flights have taken off carrying 17,498 passengers since March 1.
Besides, the UAE has opened a safe air corridor in coordination with other countries in the region, with a handling capacity of 48 flights per hour, Al Marri said.
In a show of reassurance by the UAE leadership, President Mohamed bin Zayed Al Nahyan and Dubai crown prince and Deputy Prime Minister Hamdan bin Mohammed bin Rashid Al Maktoum were spotted dining at a restaurant in the upscale Dubai Mall Monday evening. The move not only calmed nerves but sent across a signal of confidence and stability to residents and investors amid lingering tensions.
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The UAE Capital Market Authority said trading and settlement activities on the Abu Dhabi Securities Exchange and Dubai Financial Market will resume Wednesday.
Missile attack continues; food supplies sufficientDubai, which was mostly calm since morning, faced missile and drone attacks in the evening, which the government said were intercepted. UAE capital Abu Dhabi faced a barrage of ballistic missiles in the early hours of the day.
The UAE Ministry of Defence said its air defences intercepted 11 ballistic missiles and 123 drones Tuesday, while one missile landed within the country’s territory without causing any casualties.
As loud jets’ surveillance kept everyone alert, and flight operations resumed partially, Dubai and the city’s businesses slowly started shifting to normalcy.
Schools and universities extended remote learning beyond until Friday as a precautionary measure.
Dubai’s financial hub DIFC, which houses 8,844 active companies, including 102 hedge funds, would get back to in-person operations from Wednesday, with retail and food outlets to be fully operational at the centre. “Commercial and corporate entities and other offices should continue to follow their internal protocols and business continuity plans,” the DIFC Authority said Tuesday evening.
Damage to Amazon Web Services data centre in the UAE and a facility in Bahrain had affected certain banking and delivery-related services Monday. The services recovered Tuesday.
With Iran announcing a ban on exports of all foods and agricultural products as the war with Israel and the US entered the fourth day, UAE minister Al Marri said the country had sufficient stockpiles of essential goods and strategic reserves of key commodities enough for four to six months of supplies. The UAE imports about 80% of its food supplies and Iran has been a significant supplier. The minister said authorities were strictly monitoring markets to prevent unfair price increases and urged residents to not do panic-buying or stockpiling.
Markets may face volatility
Investors remained on edge, with the threat of further Iranian strikes continuing to loom over the region. While immediate market disruption may be contained, prolonged geopolitical tension could weigh on sentiment and investment decisions in the short term, analysts said.
“The reopening of markets and offices is a critical step in stabilising confidence,” said a senior finance official. “However, uncertainty remains a major factor for both local and international investors.”
Saudi Arabia’s TASI (Tadawul) plunged roughly 4.8% as it opened on Sunday, hitting a 35-month low before reducing losses. The Qatar Stock Exchange index fell more than 4% Monday morning when the market reopened.