Dubai slips on weak Air Arabia and Alec earnings while Abu Dhabi edges up

Dubai’s main index closed lower on Friday after the United States threatened an indefinite naval blockade of Iran, stoking concerns over potential trade disruptions in the Middle East, while the Abu Dhabi index edged higher.

The United States on Thursday said that it could maintain a naval blockade of Iran indefinitely and would ratchet up economic pressure on Tehran as ceasefire talks have floundered.

Dubai’s main index fell 0.4% for a second straight session, dragged lower by a 4.1% slide in budget carrier Air Arabia and a 0.5% decline in blue-chip developer Emaar Properties.

Air Arabia posted its biggest intraday drop in more than three months after reporting a 75% fall in second-quarter net profit to 87.9 million dirhams ($23.93 million).

The Investment Corporation of Dubai-owned construction firm Alec Holding fell 4.4% to a four-month low after reporting a second-quarter loss of 16.3 million dirhams ($4.44 million), compared with a profit of 122.9 million dirhams a year earlier.

Abu Dhabi’s benchmark index meanwhile edged up 0.02%, supported by a 1.8% rise in both Orascom Construction and AI-driven space tech firm Space42.

Cairo-based EPC contractor Orascom Construction posted a 74% jump in second-quarter net profit to $61.9 million.

Adnoc Gas declined 0.9% after its parentcompany said that two of its vessels were attacked while transiting the Strait of Hormuz on Thursday evening.

Abu Dhabi’s index posted a 0.5% weekly loss after three consecutive weeks of gains, while Dubai fell 1% after two straight weeks of gains, according to LSEG data.