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Dubai-listed real estate developers bounced back on Wednesday, with sector shares climbing more than 5% after the United Arab Emirates central bank introduced new measures aimed at stabilizing financial conditions.
The Dubai Financial Market Real Estate Index rose over 5%, with developer Emaar posting gains of a similar magnitude. The broader market also moved higher, increasing more than 3%, while Emirates NBD briefly surged over 7% before trimming those gains later in the session.
The Central Bank of the United Arab Emirates said it launched a "resilience package" to help banks navigate what it described as "exceptional global and regional circumstances." The measures aim to maintain financial stability and ensure continued lending to the economy.
Under the package, banks are granted expanded access to liquidity and temporary flexibility in using capital buffers, allowing them to sustain credit flows during periods of market stress.
The central bank added that the initiative is backed by foreign exchange reserves exceeding 1 trillion dirhams ($272.29 billion).
The rebound followed several days of sharp declines earlier in the week, when real estate stocks dropped as much as 35% at their lowest point. Despite the recovery, the sector index remains about 25% below its level before the conflict. The broader Dubai market has also not fully recovered, with the general index still down 17.5% compared to pre-war levels.
In energy markets, S&P Global’s Dubai crude benchmark—a key pricing reference for Middle Eastern oil exports to Asia—surged to a record $153.25 per barrel on Monday, driven by the closure of the Strait of Hormuz.
The recent swings in Dubai’s markets come as the country is getting pulled deeper into the fallout from the ongoing Iran war. Since the war began on Feb. 28, Iran has launched hundreds of missiles and drones at the UAE, including more than 300 ballistic missiles and over 1,600 drones, most of which were intercepted but still caused damage through falling debris in some areas, including hotels, parts of the city’s financial district, and energy infrastructure.
The wave of attacks has disrupted transport, energy and commercial activity, denting Dubai’s image as a safe hub for tourism, real estate and finance in the region.
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