Stock Exchanges Closed: These stock exchanges have come to a standstill due to the war between America, Israel and Iran. Know how long they will remain closed?

News Topical, Digital Desk : Stock Exchanges Closed: The United Arab Emirates (UAE) has temporarily closed its major stock markets following rising military tensions in the region and US-Israeli attacks on Iran. The financial regulator announced that the main exchanges in Dubai and Abu Dhabi will not reopen immediately after the weekend.

Which exchanges were closed?
 

• Abu Dhabi Securities Exchange (ADX)
• Dubai Financial Market (DFM)
• It was decided to keep both these markets closed on Monday and Tuesday.

What was the decision? This move came amid reports of hundreds of missile and drone attacks by Iran on the UAE. One person was killed and seven others injured in an attack on Abu Dhabi's main airport. The UAE's Capital Markets Authority said it was continuously monitoring regional developments and would take further action if necessary. 

Although regulators did not elaborate on the reason, the purpose of closing stock markets during a crisis is usually to prevent panic selling. During wars or major geopolitical crises, investors tend to sell shares quickly to avoid heavy losses. This can accelerate market declines and lead to a market crash.

Following the attacks on Iran,
 

• Saudi Arabia's Tadawul All Share Index fell more than 4%
• Egypt's EGX 30 fell nearly 2.5%.
• Japan's Nikkei 225 and Hong Kong's Hang Seng also closed in the red.
• Crude oil prices recorded a sharp jump

There is also criticism,

with some experts believing that closing the market could create further uncertainty among investors. According to New York University professor Berdine Hickok, liquidity is crucial during times of market stress, and restricting it could impact investor confidence. However, Haitham Aoun, a finance expert at the American University in Dubai, says this is a precautionary measure, not a sign of any structural weakness.

Has this happened before?
 

• The UAE has closed markets before, but not because of regional conflict.
• Upon the death of President Khalifa bin Zayed Al Nahyan in 2022
• Upon the death of Sheikh Maktoum bin Rashid Al Maktoum, ruler of Dubai, in 2006
• Markets in other countries have also been closed during the crisis:
• Moscow Exchange closed for almost a month following the Russia-Ukraine war in 2022
• Egyptian markets remained closed for two months during the Arab Spring in 2011.
• The New York Stock Exchange was closed for six days after the 9/11 attacks.

How important is the UAE market?
 

• The combined market cap of the Abu Dhabi and Dubai markets is approximately $1.1 trillion.
  In comparison:
• The New York Stock Exchange is worth approximately $44 trillion.
• Saudi exchanges exceed $3 trillion  
• Although the UAE is a minor player globally, its market reputation has grown in recent years. The Dubai Financial Market General Index had gained more than 29% in the past 12 months through February

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