The United Arab Emirates is closing its main stock exchanges at the start of the trading week due to the escalation of the regional war, AP reports.

The country's capital markets authority said the Abu Dhabi Securities Exchange and Dubai Financial Market will be closed on Monday and Tuesday.

The statement said the agency would closely monitor the situation in the region and take further steps if necessary.

Nasdaq Dubai also announced a trading halt.

While Dubai is considered the main business center of the Persian Gulf, the UAE capital Abu Dhabi is also a key regional financial hub, home to some of the world's largest sovereign wealth funds.