War wipes $120bn from UAE markets, as economy comes under pressure Submitted by Elis Gjevori on Sun, 03/29/2026 - 20:22 Israeli-US war on Iran hits UAE markets, aviation and property, exposing structural vulnerabilities to an economy that once project A smoke plume rises from an ongoing fire near Dubai International Airport in Dubai on March 16, 2026. (AFP) Off The United Arab Emirates (UAE) is facing its most serious economic shock in decades, as the Israeli-US war on Iran delivers a direct hit to its core industries, from finance to aviation, exposing major vulnerabilities in its economic model. More than $120bn has been wiped from market capitalisation on the Dubai and Abu Dhabi stock exchanges in the last month, while over 18,400 flights have been cancelled. The Dubai index has been hit hardest, plunging 16 percent since the war began on February 28, more than double the decline seen in Abu Dhabi.  The UAE President, Sheikh Mohamed bin Zayed Al Nahyan, and Dubai Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, have tried to put a brave face on their country’s economic woes - with publicity trips to Dubai Mall. Analysis compiled by Middle East Eye from publicly available information indicates that it will take more than a few trips to the mall to salvage the UAE’s economy under any post-war scenario. Unlike Saudi Arabia and Oman, whose stock markets have risen on the back of higher oil prices, the UAE’s globalised economic model, built on tourism, real estate, logistics and finance, has taken a direct hit and laid bare the country’s vulnerable model. By March 28, Iran had launched 398 ballistic missiles, 1,872 drones and 15 cruise missiles at the UAE, making it the most targeted country after its close ally Israel. While most were intercepted, debris still caused damage in Abu Dhabi and Dubai, including at the Burj Al Arab, Palm Jumeirah, Dubai airport and the Fujairah oil industrial zone. Real estate sector “Brand Du