Dubai’s measure fell to its lowest point in a week after a decision to delay a possible upgrade of the UAE bourses to “emerging” market status for another six months.
The decision by influential index compiler MSCI comes after months of speculation in the markets.
The late introduction of the key settlement system, where securities are delivered on the same day as payment, was cited as a key reason for the delay.
“Given the new DVP models were introduced only in May 2011, few market participants have had the opportunity to make a full assessment yet,” MSCI said in a statement.
“This additional review period will also give more time to the regulators and the stock exchanges to address the remaining concerns raised by international institutional investors.”
The Dubai Financial Market dropped 0.8 per cent at the opening bell to 1,565.65 points, the lowest point since June 13.
"Look at everything," said one day trader at the Dubai Financial Market, pointing to the stocks on the trading board as markets opened. "Dyed red."
Bourse operator DFM Company, the only publicly listed market in the Arab world, staged its biggest one day loss at the open. It fell 3.9 per cent to Dh1.24.
Losses on blue-chip stocks including Emaar Properties, Arabtec and Drake & Scull International dragged on the index.
Shares in those companies lost 2.5 per cent to Dh3.13, 2.9 per cent to Dh1.32 and 1.5 per cent to 99.5 fils respectively.
But some market players remained positive about the outcome.
“This is not a “no”, it is a clear recognition that something that has been done but this is a second chance,” said Hassaim Arabi, chief executive
at Gulfmena Investments in Dubai.
MSCI cited limits on foreign ownership as another main reason for delaying the upgrade.
Calling Qatar’s market “quasi un-investable”, the index compiler suggested the Doha exchange would not qualify for emerging markets unless it lifted its 25 per cent cap on foreign ownership.
A senior official from the UAE’s Ministry of Economy has also said the country would not ease restrictions on the current 49 per cent cap on foreign ownership.
Zayed Sustainability Prize
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Company%20Profile
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