Geopolitical developments and military conflicts in the Middle East have always had a direct impact on financial markets, and the “Ramadan War” has been no exception. In this context, the economy of the United Arab Emirates — as one of the region’s financial and commercial hubs — has been notably damaged by these tensions. Analyses indicate that the value of shares of 10 major Emirati companies has experienced a considerable decline during this period; an issue that once again reveals the fragility of markets dependent on foreign investment in times of crisis.

Leading these declines is the Khalifa bin Zayed Investment Company, which has experienced a drop of approximately 36.5% — the largest decrease in value among the companies examined. This steep fall demonstrates that companies tied to development projects and foreign capital flows are the most vulnerable to political uncertainties.

Following that are two major banks of the country, namely First Abu Dhabi Bank (FAB) and Emirates NBD, both of which have seen declines of over 15%. This simultaneous drop in the UAE’s two main banks indicates growing investor concern and diminished confidence in the stability of the financial system under conditions of regional tension.

In the real estate sector, selling pressure is also clearly visible. Major companies in this field, such as Emaar Properties and Aldar Properties, have experienced a noticeable decline — a trend accompanied by falling property transactions in Dubai and Abu Dhabi and reduced investment demand in the housing market.

In the international trade and logistics sector, the major company DP World has also faced a drop in share value, reflecting market concerns over disruptions or a decline in global trade flows amid geopolitical uncertainties. In the technology and telecommunications sector, Emirates Telecommunications Group (e&) has recorded a decline in share value due to the negative market sentiment.

In the energy sector, ADNOC Gas has also seen a drop of between 5% and 12%; an issue showing that even the energy sector — typically considered the stable pillar of the UAE economy — is not immune to political shocks. Additionally, Abu Dhabi Commercial Bank and Dubai Islamic Bank are among the financial institutions that have experienced a decline in market value, indicating the spread of risk across the country’s entire banking network.

Overall, the simultaneous decline in companies such as First Abu Dhabi Bank, Emirates NBD, Emaar, Aldar, DP World, e&, and ADNOC Gas demonstrates that nearly all major sectors of the UAE’s stock market economy have come under pressure.

From a macroeconomic perspective, these developments once again show that economies like that of the UAE — which are dependent on foreign capital, free capital flows, and geopolitical stability — are highly sensitive to political shocks. The country’s stock market, as one of the most open markets in the region, has quickly reacted to security developments, and this very fact has led to a significant decline in total market value.

Nevertheless, some analysts believe that if tensions subside, a gradual market recovery is possible. However, in the short term, increased investment risk and the possibility of some foreign capital outflows remain likely.

In the end, the “Ramadan War” has once again demonstrated that in globally interconnected economies — especially in geopolitically sensitive regions — the line between politics and markets is very thin, and a political crisis can affect billions of dollars of financial market value in a short period.