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UAE stocks drop despite deals with Israel

A photo taken on January 6, 2020 shows the Dubai Financial Market in the Gulf emirate as Gulf bourses were hit by a panicky sell-off amid Iranian vows of retaliation over the US killing of a top general. - All seven bourses in the Gulf Cooperation Council (GCC) states closed in the red, on the first trading day since the death of powerful military commander Qasem Soleimani. (Photo by Karim SAHIB / AFP) (Photo by KARIM SAHIB/AFP via Getty Images)
A photo taken on January 6, 2020 shows the Dubai Financial Market in the Gulf emirate [KARIM SAHIB/AFP via Getty Images]

The UAE has incurred losses of about 20.5 billion dirhams ($5.6 billion) during last week’s stock transactions, despite the deals signed with Israel.

Major shares declined due to the negative impact of selling operations conducted by investors, while the overall Dubai Financial Market General Index fell 2.12 per cent.

According to market indicators, the real estate sector declined 3.93 per cent, the investment sector by 3.59 per cent, the banking sector by 1.81 per cent, the services sector by 1.47 per cent and the consumer good exchanges by 1.37 per cent.

The general index of the Abu Dhabi Securities Exchange (ADX) also declined one per cent, as the real estate sector recorded a 3.28 per cent decrease, the energy sector a 3.25 per cent drop, the banking sector 0.66 per cent decrease and telecommunications sector 0.48 per cent.

READ: UAE signs contracts with Israel firms on UN blacklist

On 13 August, US President Donald Trump announced a peace deal between the UAE and Israel brokered by Washington.

Abu Dhabi said the deal was an effort to stave off Tel Aviv’s planned annexation of the occupied West Bank, however, opponents believe normalisation efforts have been in the offing for many years as Israeli officials have made official visits to the UAE and attended conferences in the country which had no diplomatic or other ties with the occupation state.

Israeli Prime Minister Benjamin Netanyahu however denied this saying annexation is not off the table, but has simply been delayed.

As a result of the deal, the UAE and Israel have inked a number of commercial deals with more expected to be announced in the near future. The Emirates also hopes this will open the doors for Israeli tourists.

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IsraelMiddle EastNewsUAE
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