The UAE markets ended the week slightly lower, amid developments in the global economy and the wider geopolitical landscape. The DFM General Index fell 0.49% over the week to 5,856.55. That said, Dubai has had a particularly strong month and is still up more than 15% month-to-date. Abu Dhabi saw a similar move, with the ADX General Index easing 0.43% to 10,004.43, while holding on to a 0.91% gain for the month. The declines were relatively small and, for now, appear to reflect a more watchful mood among investors rather than any major change in the outlook for UAE equities. Local fundamentals remain supportive, although developments in global markets are likely to continue influencing sentiment in the near term.
Dubai
The DFM General Index is trading 13.7% below its 52-week high and has a forward P/E multiple of 9.7x the 12-month forward earnings of its constituents. This week, the best-performing stocks include Islamic Arab Insurance (+26.14%), National Cement (+12.94%), Union Properties (+8.11%), Sukoon Insurance (+4.35%), and Talabat Holdings (+4.27%). Other stocks to gain between 1.5% to 3.8% include Emirates Reem Investments, National Central Cooling Co., Mashreq Bank, and Parkin, to name a few. On the flip side, the laggards include Alec Holdings (-5.30%), Emirates Integrated Telecommunications (-4.17%), Emirates NBD Bank (-3.08%), Takaful Emarat Insurance (-2.96%), and Salik (-2.81%). Sector-wise, Materials was the standout performer this week, rising 12.94%, while Consumer Discretionary also had a good week with a gain of 3.35%. Utilities edged up 0.38%. Performance elsewhere was softer with Communication Services down 4.17% and Consumer Staples losing 2.48%. Real Estate and Industrials also slipped, falling 0.73% and 0.57%, respectively.
Abu Dhabi:
Despite this week’s wobble, the ADX General Index remains on a strong footing and is trading just 7% below its 52-week high. Its valuation is also attractive as evidenced by a forward P/E multiple of 11x the estimated 12-month forward earnings. This week, the best-performing sectors were Healthcare (+6.55%), Basic Materials (+3.14%), Telecommunications (+2.11%), Industrials (+1.96%), and Real Estate (+1.34%). On the flip side, the Financials sector fell 1.38% while Consumer Discretionary and Consumer Staples fell 0.56% and 0.43%, respectively. Meanwhile, the Abu Dhabi Securities Exchange (ADX) reported a 99% compliance rate among listed companies for the disclosure of audited financial statements for the first half of the year. The exchange also highlighted a strong earnings performance, with aggregate profits of listed companies rising 38% year-over-year during the period.
Expectations for the week ahead:
The earnings calendar is very light next week, with just Dubai Residential REIT slated to announce quarterly results, as most companies have already reported earnings. U.S. Treasury Secretary Scott Bessent is scheduled to share details on Monday about America’s latest plan to ramp up economic pressure on Iran. This could set the tone for global markets in the upcoming week and could impact overall risk sentiment as well as the oil markets. Brent crude has moved back above $90 per barrel, offering a supportive backdrop for the region’s energy-linked economies. On the global front, Nvidia’s earnings on August 26 and the Jackson Hole symposium from August 27–29 are likely to be closely followed for fresh signals on the technology outlook, U.S. monetary policy and the path for global interest rates. While external developments could contribute to some near-term market fluctuations, the UAE continues to stand out for its strong economic foundations, healthy corporate earnings, attractive valuations and resilient domestic growth environment, which should help provide a degree of stability and keep the broader outlook for local equities constructive.
