Emaar Shares Plummet Amid Broader Market Decline in UAE

Emaar Properties experienced a significant drop of 8.9% in its share value during early trading on the Dubai Financial Market , marking its steepest intraday decline since late 2021. This downturn contributed to the DFM General Index falling by 1.8%. Concurrently, the Abu Dhabi Securities Exchange saw its index decrease by 0.8%.

The decline in Emaar's stock is partly attributed to ex-dividend trading, a period when a stock trades without the value of its next dividend payment, making it less attractive to investors. Additionally, Emaar Development, a subsidiary of Emaar Properties, saw its shares slip by 2.4%.

Investor sentiment has been negatively impacted by the announcement from U.S. President Donald Trump of a 10% baseline tariff on all imports, with higher duties on several key trading partners. This move has intensified fears of escalating global trade tensions and the potential for a global recession. The ripple effects of these tariffs have been felt across Gulf markets, with Saudi Arabia's main index dropping 0.4% after a four-day Eid holiday. Major Saudi companies, including Saudi National Bank and oil giant Saudi Aramco, experienced declines of 1.5% and 0.8%, respectively.

The oil market has also reacted to these developments, with prices falling by as much as 3%. This decline reflects concerns that heightened trade tensions could suppress economic growth and, consequently, reduce fuel demand.