UAE shares dip on escalating Mideast conflict

Stock markets in the United Arab Emirates ended lower on Friday amid rising tensions in the Middle East as the United States and Britain launched strikes against Houthi military targets in Yemen.

In Abu Dhabi, the index was down 0.5%, ending its five-sessions winning streak, while weekly gains hit over a two-month high.

The conglomerate International Holding Company dropped 0.7%, and the UAE’s largest lender, First Abu Dhabi Bank slipped 2%, the sharpest decline in over two months.

Dubai’s benchmark index ended 0.3% lower, extending the previous sessions’ losses with almost all sectors in the negative territory, while it gained 0.4% on a weekly basis.

The tolls operator Salik Company lost 1.5%, and Tecom Group slid 1.4%.

“The Dubai stock market recorded a slightly positive week and remained on an uptrend overall”, said Ahmed Negm, Head of Market Research MENA at XS.com.

“However, the main index saw some price corrections as traders reacted to increasing geopolitical tensions and could continue to see some downside risks”.

U.S. and British warplanes, ships and submarines struck across Yemen overnight in retaliation against Iran-backed Houthi forces for attacks on Red Sea shipping, a widening of regional conflict triggered by Israel’s war in Gaza.