After a strong performance in July, UAE markets showed a slight cooling off, with both the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) ending the week marginally lower. However, beneath the surface, market activity remained vibrant, driven by robust tourism data, record public transport usage, and a corporate earnings season filled with positive surprises.
Dubai Financial Market (DFM)
The DFMGI declined by 0.64% to close at 6,111.95 points, ending a streak of five consecutive weekly gains. Leading stocks saw notable pullbacks: Emaar Properties dropped 2.2% to AED 15.35, and Emaar Development slipped 0.7%. DEWA fell 2.8%, marking the steepest decline among DFM heavyweights.
In contrast, Dubai Islamic Bank rose 1.2%, while Salik gained 1.9%, continuing its steady summer climb. Talabat declined by 2.3%, remaining under pressure.
The major highlight came from DFM’s own earnings report, announcing a staggering 537% year-on-year surge in net income to AED 585 million, supported by a one-off AED 462 million land sale. Even excluding this deal, earnings still rose by around 20%, reinforcing DFM’s role as a key proxy for investor sentiment.
Abu Dhabi Securities Exchange (ADX)
The FADGI index slipped 0.23% to 10,316.65 points. While the banking sector faced mild pressure, certain stocks outperformed significantly. Multiply Group soared 8.2% to AED 2.89 after announcing a major $1.5 billion acquisition of Spain’s Tendam — its largest international deal to date.
ADNOC Gas climbed 1.5% to AED 3.32 amid improved contract visibility. Despite reporting net income of AED 2.9 billion (+25% YoY) and revenue of AED 7.7 billion (+46% YoY), Aldar Properties fell 2.3% to AED 9.57.
Among major banks, FAB declined by 1.6%, ADCB dropped 3%, while ADIB held steady at AED 23.7.
On the tourism front, momentum remained positive with record visitor numbers in Ras Al Khaimah and AED 182 million in hotel revenues for Abu Dhabi in May. Air Arabia also expanded its network across Southeast Asia, bolstering sentiment in consumer and transport-linked sectors.
Global Market Developments
Volatility continued globally as Microsoft joined Nvidia in the $4 trillion valuation club. Meanwhile, the US and EU finalized a 15% unified tariff agreement.
Former US President Donald Trump revealed a new tariff map that extended trade tensions to India and China. Still, market expectations around the Fed remained steady after employment and inflation data came in line with forecasts.
In a significant geopolitical development, the UK, France, and Germany formally recognized the State of Palestine — a coordinated move that stirred diplomatic waters in the region.
Despite a powerful earthquake triggering tsunami warnings across the Pacific, risk assets held their ground, reflecting a market balancing macro factors with earnings strength.
Despite superficial declines, UAE markets did not lose their underlying momentum. Strong corporate results, booming tourism, and increasing cross-border investments point to a maturing market that remains disciplined in the face of global uncertainty. While central banks return to the spotlight, cautious optimism prevails — and within that caution lies opportunity.
