UAE Markets Rise as Rate Hike Lifts Banks, Emaar Rally Drives DFM – Comments from Century Financial

The Fed’s projections signal another increase by year-end as inflation remains elevated, with most Gulf central banks expected to follow the moves with 25-basis-point increases under their dollar-pegged currency regimes, putting further upward pressure on regional borrowing costs.

EIBOR’s rise will be pushing up costs on variable-rate mortgages and EIBOR-linked business loans. UAE equities are likely to respond unevenly, with possible beneficiaries including banks, which stand to gain from wider lending spreads, while property and consumer stocks may face headwinds from higher financing costs.

DFM (Dubai Financial Market):
The DFM General Index closed its fourth week in the green, though with modest weekly returns, as the week ending 18th September 2026 rose 0.27% to AED 5957.

During the week, the index was led by a strong performance from major names. This included Emaar Properties, which rose 6.61%; Emaar Development, which rose 5.26%; while Parkin Co rose 4.24%. The rally in Emaar shares was partly due to the company’s announcement of an exceptional one-time cash dividend of AED 4.4 billion to shareholders at AED 0.50 per share. Both Emaar stocks comprise about 16.6% weightage of the DFMGI, suggesting the strong influence of the real estate giant. Meanwhile, stocks like Mashreq Bank fell 5.06%, Emirates NBD Bank fell 3.61%, and DEWA fell by 2.86% during the week, adding pressure to the broader index. (Source: Bloomberg)

By sector, Real Estate was the best performer, up 5.37%, followed by Materials, up 4.82%, and Communication Services, up 2.93% for the week. On the flip side, Utilities lagged most with a 2.08% fall, followed by Financials down 2%, while Consumer Staples closed 1.49% lower. (Source: DFM Reports)

No major names released earnings during the week, and none are scheduled to release for the next week. (Source: Bloomberg)

Technically, on the daily chart, the DFMGI needs to close decisively above the AED 6020 level from the highs of 5th August to confirm a bullish market structure. If that level is broken, prices can test the AED 6102 highs from 7th July. On the downside, price can find potential support near the AED 5900 level, which has the 50-, 100-, and 200-day EMAs coinciding.

ADX (Abu Dhabi Securities Exchange):
The ADX General Index climbed 1.57% over the week of 14–18 September 2026. It closed at 10,271.76. That move carried the index cleanly through the 10,130 level, a ceiling that had turned back several earlier attempts to rally. Breadth on Friday’s session was mixed, with 38 stocks up and 45 down, but the weekly picture told a different story altogether.

Oil and interest rates provided the tailwinds. Brent pushed back above $105 a barrel after Saudi Yanbu loading operations were suspended. Also, shipping through the Strait of Hormuz remains constrained. Financials caught a bid on the UAE central bank’s decision to raise its base rate 25bps to 3.90%, matching the Fed to maintain the dirham-dollar peg. The expectation is straightforward: wider margins for the banks.

SPACE42 led the market movers with an 8.54% move, driven by its announcement of a deal with Viasat Inc. (VSAT), committing up to $1 billion to establish a new satellite infrastructure business, Equatys. The company aims to extend mobile coverage into areas terrestrial networks cannot reach.

Meanwhile, NMDC Group added 4.84%, Aldar Properties 4.23%, Alpha Dhabi Holding 4.06%, and ADNOC Logistics & Services 3.37%. On the losing side, there was little to speak of. Borouge slipped 0.42%, and International Holding Company edged down 0.14%.

By sector, financials gained 2.37%, real estate rose 2.24%, and health care closed up 2.08%. Industrials and consumer staples posted modest advances of 0.84% and 0.80%. Basic materials was the outlier, falling 6.07%. Energy dropped 1.57%, and telecoms shed 0.62%.