Middle East war burns "Desert Pearl": Dubai stock market plunges into bear market, down 21% from February high.

As the Middle East crisis causes chaos in the energy, shipping, real estate, and tourism industries, the Dubai stock market has fallen into a bear market territory. The Dubai Financial Market General Index fell as much as 3.2% on Monday, down 21% from its peak in February. If the index closes at this level, it means the stock market has entered a bear market, defined as a drop of 20% or more from its high. The recent sell-off was triggered by the US and Israel's attacks on Iran, with Iran retaliating by attacking Gulf cities. Travel in the Middle East region has been disrupted, threats to shipping have increased, pushing oil prices higher. As the war enters its third week, Dubai's carefully crafted image of a safe harbor in this volatile region is under threat. Emaar Properties PJSC and Emaar Development PJSC have seen the largest declines since the conflict erupted at the end of February, falling by 34% and 35% respectively. Before the conflict erupted, the Dubai stock market had risen by 300% in nearly six years, boosted by consumer spending, tourism, real estate boom, and financial services. "This was expected and across all sector indices was a broad-based decline, so it is a complete reflection of the geopolitical situation in the region," said Junaid Ansari, Head of Research and Strategy at Kamco Investment Co. "There will be a lot of opportunities for bottom fishing once the situation stabilizes." After drone incidents led to flight suspensions for several hours, Emirates resumed limited services at Dubai's main international airport on Monday, the latest setback in efforts to return the aviation hub to normal operation. Two drones also crashed near the airport on Wednesday, injuring four people. All these attack events, as well as missile and drone interception incidents in various parts of Dubai, have led to aircraft circling over Dubai International Airport outside airspace daily, causing frequent delays and extended flight times.