UAE stocks rise as earnings boost sentiment

Stock markets in the United Arab Emirates closed higher on Friday, with Abu Dhabi leading the gains as strong corporate earnings boosted investor confidence.

Abu Dhabi’s benchmark index jumped 0.4%, extending gains to a second consecutive session.

Conglomerate Alpha Dhabi Holding gained 1.5% ahead of its earnings release later in the day.

Adnoc Drilling advanced 1.2% after the firm reported a 2% growth in Q2 net profit to $359 million, exceeding analyst estimates.

Despite external pressures, UAE stock markets could continue to see resilience, supported by strong economic fundamentals and government initiatives and investments in infrastructure and logistics, said Joseph Dahrieh, managing director at Tickmill.

Dubai’s main index edged 0.1% higher, helped by a 1% rise in toll-gate operator Salik Company and a 5.9% jump in Commercial Bank of Dubai.

The gains were limited by a 0.7% decline in top lender Emirates NBD Bank and a 0.5% fall in blue-chip developer Emaar Properties.

Dubai Financial Market dropped 1.4% after the exchange operator reported a more than 60% decline in second-quarter profit to 229.8 million dirhams ($62.57 million).

Oil prices, a key driver of Gulf financial markets, rose on Friday as persistent regional tensions and shipping constraints fuelled supply concerns.

Brent crude was up 1.4% at $90.31 a barrel by 1146 GMT.

For the week, Abu Dhabi’s index gained 0.9%, while Dubai rose 0.2%, snapping a three-week losing streak.