UAE Markets Update for the Week Ended 04 September 2026
The UAE stock markets closed this week on an upbeat note given many positive catalysts. For starters, non-oil private sector growth accelerated, as evidenced by the uptick in the S&P Global UAE PMI to 55.3 in August from July’s 52.7 reading. This rate of growth marks the swiftest pace since December 2024. UAE businesses are increasingly strengthening supply-chain resilience by turning to local suppliers, helping reduce their exposure to geopolitical disruptions. This shift has supported faster delivery times and robust purchasing activity, while firms have also stepped-up inventory building at the fastest pace in nearly three years. Such increase in stockpiling points to a strong demand outlook and preparedness in the event of a potential future supply disruption. Moreover, the recent uptick in oil prices has also lent a leg up to the markets.
Dubai
The DFM General Index gained 0.7% on Friday, closing at 5,884.63, marking its biggest jump since August 4. The index is currently trading just a smidge lower than the 200-day EMA, and a break above could potentially fuel a leg up to 5,985. On Friday, Emaar Properties PJSC was the biggest contributor to the index’s gains, rising 2.2%, while SHUAA Capital PSC emerged as the session’s top performer, surging 14.9%.
This week, Materials emerged as the best-performing sector with a gain of 5.05%, followed by Consumer Staples, which rose 3.01%. Real Estate gained 1.11%, while Utilities and Industrials showcased modest gains of 0.91% and 0.06%, respectively. On the flip side, Consumer Discretionary and Communication Services plunged 2.71% and 2.43%, respectively, while Financials fell 0.05%. Over the week, Dubai-listed stocks posted a mixed performance, although gainers held a slight edge over decliners. SHUAA Capital was the standout performer, surging 26.17% this week. SHUAA returned to profitability in Q2, reporting AED 9.1M in net profit versus an AED 9.7M loss in Q1, alongside a 15% sequential rise in revenue and continued progress on its restructuring and refinancing efforts. The combination of improving fundamentals and strong trading momentum appears to have supported the sharp weekly advance. Meanwhile, Islamic Arab Insurance gained 12.30%. Union Properties (+8.42%) and Deyaar Development (+6.10%) and Mashreqbank (+4.93%) performed strongly in the property space, likely spurred by strong domestic economic conditions and Deyaar’s strong development backlog. On the downside, Wataniya International Holding (-4.12%), Sukoon Takaful (-4.05%) and Talabat Holding (-3.23%) were among the notable laggards, while Emirates NBD (-2.26%) also declined.
Abu Dhabi
The ADX General Index closed Friday’s session higher by 0.5% at 9,977.36, led higher by a jump in the share prices of FAB (+1.5%) and Abu Dhabi National Hotels (+4.1%). Although the index is down 0.67% this week, it managed to close above the 200-day SMA, which suggests potential bullishness in the week ahead. Overall, the index is up 1.8% quarter-to-date, trading 7.2% lower than its 52-week high observed on 18 February 2026. From a valuation perspective, it is trading at 10.9x the 12-month forward earnings of its constituents, making it attractive for international investors.
On the corporate front, Aldar Properties and Abu Dhabi Commercial Bank completed Abu Dhabi’s first mortgage financing for an off-plan property under the Abu Dhabi Real Estate Centre’s newly introduced framework. The development marks a notable step in expanding financing options within the emirate’s off-plan property market. As a result, Aldar and ADCB ended Friday’s session higher by 1.58% and 1.20%, respectively. Looking at the sector-wise performance for the week, the top-performing sectors include Materials (+5.04%), Consumer Discretionary (+2.98%), Healthcare (1.14%), and Consumer Staples (+0.37%). By comparison, sectors like Industrials and Telecommunications fell 1.77% and 1.27%, respectively. Other laggards include Financials (-0.63%), Energy (-0.53%), and Real Estate (-0.39%).
Looking Ahead
Moving forward, UAE equities are likely to trade with a cautiously positive bias, supported by the sharp improvement in non-oil activity, stronger new orders and resilient domestic demand, which should remain particularly supportive for Dubai’s real estate and consumer-facing names as well as Abu Dhabi’s large-cap banks. However, investors will likely keep a close eye on oil prices, regional developments and global bond yields, while next week’s U.S. inflation data could shape expectations for the Fed’s September rate decision and, in turn, influence risk appetite across both the DFM and ADX
