UAE shares gain as regional conflict fuels oil supply concerns

UAE stock markets closed higher on Friday, with Dubai outperforming its regional peer, supported by a sharp weekly rise in oil prices as attacks on key Middle East shipping routes fuelled concerns that supply disruptions could persist.

Crude was on track to gain more than 7% for the week, while U.S. diesel prices hit a record high.

Oil flows remained restricted through the Strait of Hormuz as the U.S. and Iran traded attacks, while Houthis seized control of Yemen’s port of Mocha, threatening Saudi oil exports in the Red Sea.

Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday, well below the 10-day average of 15.

Brent crude, a key driver of Gulf economies, was down 3.6% at $103.75 a barrel by 1056 GMT.

Dubai’s main market advanced 0.6% after two sessions of losses, boosted by a 4.2% surge in top lender Emirates NBD Bank, while utility firm Emirates Central Cooling Systems Corporation rose 1.9%.

National Central Cooling, however, fell 2.1% after announcing the appointment of Yousif Al Hammadi as its new chief executive officer.

Abu Dhabi’s benchmark index I edged up 0.03% for a fourth straight session, supported by a 3.6% rise in IHC-owned investment firm Two Point Zero Group.

State-owned energy shipping firm Adnoc Logistics & Services climbed 2.9%, while energy infrastructure developer NMDC Group added 3.5%.

Gains in the index were limited by a 5% decline in chemical maker Fertiglobe and 1.5% fall in largest lender First Abu Dhabi Bank.

Separately, the United Arab Emirates is quietly revising plans for a 5-gigawatt AI data center project – one of the biggest outside the U.S. – after the Iran war prompted a rethink of how and where critical infrastructure should be built, six people familiar with the matter told Reuters.

For the week, Abu Dhabi index and Dubai index recorded a weekly gain of 1.4% and 1% respectively, according to LSEG data.