UAE equity markets closed the week on a strong note, with a significant easing of regional tensions providing a clear catalyst for investor sentiment. In a major development recently, the US and Iran are close to reaching a deal and opening the Strait of Hormuz. The near-term optimism has boosted global equity indices and caused a decline in crude oil prices.
 DFM General Index
The DFM General Index staged a recovery of about 2.6% in the week ending 7th August 2026, closing the week at AED 5,944.50. The DFM General Index is 12.4% below its 52-week high on Feb. 10, 2026 and 13.6% above its low on March 16, 2026. DFM General Index is trading at a price-to-earnings ratio of 9.4 on a trailing basis and 10.1 times its members’ estimated earnings for the coming year.
Looking at the sector-wise performance, almost all sectors ended the week in positive territory. Consumer Discretionary, Real Estate, and Financials were the biggest winners, posting gains of 3.80%, 3.28%, and 3.26%, respectively. These were followed by Industrials (+2.27%) and Communication Services (+1.15%).
Top gainers for the week include Air Arabia (+6.94%), Emirates NBD (+5.46%), Commercial Bank of Dubai (+5%), Dubai Taxi (+3.3%), and Emaar Development (+3.1%). On the other side, Emirates Central Cooling System, Sukoon Takaful and Dubai National Insurance declined by 6.25%, 4.44%, and 3.7%, respectively.
On the earnings front, Emaar released its Q2 2026 results this week. It reported an 18% yoy increase in revenue to AED 11.5 billion, and net income rose 9% yoy to AED 3.94 billion. In the H1 2026 results, Emaar delivered 21% yoy revenue growth to AED 23.9 billion, with net profit before tax up 23% yoy to AED 12.8 billion. Property sales in H1 were approximately AED 26.6 billion, while the revenue backlog from property sales grew 13% yoy to AED 164.9 billion. This provides the company with strong revenue visibility. The company continued to deliver across its development and international businesses in the first half of 2026. Emaar Development PJSC reported revenue of AED13.3 billion, up 34% year on year, while net profit before tax reached AED7.8 billion, up 41% year on year. The revenue backlog from projects under development in the UAE stood at AED135.7 billion, up 6% from H1 2025, providing strong visibility and de-risking future revenue recognition. Revenue from malls, retail and the leasing portfolio also grew modestly by 9% yoy to AED 3.5 billion. The company also highlighted that these results demonstrate the strength and resilience of the UAE economy and the company over the long term. Thus, looking ahead, the company’s large sales backlog and track record in execution should support its property revenue this year, while retail leases should help mitigate the drag from the hospitality and entertainment business on the recurring income segment.
On the earnings front, investors will closely track companies reporting next week, including Dubai Electricity and Water Authority, Talabat Holdings, Air Arabia, Dubai Investments, and Dubai Residential REIT.
From a technical standpoint, the index closed at AED 5,944.5, above the 50-day SMA at AED 5,918. The daily RSI is also trending upwards above 50, indicating bullish momentum building in the index. A close above the immediate resistance at AED 6,050 will signal further bullishness and could lead to a test of AED 6,270. Conversely, support is observed at AED 5,780.
ADX General Index
The ADX General Index recovered almost 2% by the end of the week, closing at AED 10,095 amidst optimism over the potential deal in process between the US and Iran. The ADX General is 6.1% below its 52-week high on Feb. 18, 2026 and 8.6% above its low on March 16, 2026. It is trading at a price-to-earnings ratio of 16.9 on a trailing basis and 11.7 times estimated earnings of its members for the coming year.
Real Estate emerged as the best-performing sector on the ADX this week, gaining 4.51%. Industrials was close behind, advancing 3.31%, followed by Healthcare (+2.80%), Technology (+2.73%), and Energy (+2.31%). On the flip side, the Basic Materials index (-4.58%) was the only sector to close the week in negative territory, while Consumer Staples and Utilities were the relative laggards among the positive performers with marginal gains.
Among the top 20 companies by market cap, Alpha Dhabi and Abu Dhabi Islamic Bank boosted the index, increasing by 8.88% and 8.73% over the week. They were followed by Adnoc Drilling, First Abu Dhabi Bank, and Aldar Properties, which gained 5%, 4.74%, and 4.7%, respectively. Conversely, Fertiglobe declined by 3%.
On the earnings front, there are no significant earnings releases this week. However, market participants will closely track reports from major companies next week, including Adnoc Gas, Abu Dhabi Ports, and Abu Dhabi National Energy.
From a technical standpoint, the index closed at AED 10,095, above the 200-day SMA level. A close above its immediate resistance at AED 10,130 will indicate further bullishness in the index. Conversely, support is observed at AED 9,750.
