The UAE stock markets ended mixed on Friday, influenced by falling oil prices and speculation about a potential U.S. Federal Reserve rate cut. Investors are closely monitoring the U.S. payrolls report, which is expected to provide further economic insights.
The Federal Reserve’s policy decisions significantly affect Gulf economies, as most regional currencies, including the UAE dirham, are pegged to the U.S. dollar.
Oil Prices Decline Amid Supply Concerns
Oil prices, a crucial factor for Gulf economies, declined as analysts forecast a supply surplus in 2025. This comes despite the OPEC+ decision to delay supply increases and extend production cuts until the end of 2026.
- Brent crude futures dropped 1.03%, settling at $71.35 per barrel by 1216 GMT.
Market Performance: Abu Dhabi vs. Dubai
In Abu Dhabi, the index fell by 0.1%, ending at 9,266 points, following two days of gains. Major contributors to the decline included:
- Abu Dhabi Commercial Bank, which slid by 1.4%, and
- Alpha Dhabi Holding, down by 1.8%.
Conversely, Dubai’s main index advanced by 0.7%, closing at 4,854 points, as almost all sectors posted gains. Key performers included:
- Emirates NBD Bank and Emaar Properties, both rising over 1%, and
- Dubai Electricity and Water Authority, up 2.6%.
Key Takeaways
- Abu Dhabi’s stock index declined by 0.1%.
- Dubai’s stock index climbed by 0.7%, supported by strong performances in banking and real estate sectors.
As the region waits for the U.S. jobs report, market movements reflect the global interplay between economic data, oil trends, and monetary policy expectations.
