Overview:
UAE markets closed the week mixed as earnings season dominated trading. Abu Dhabi's non-oil foreign trade expanded significantly year-over-year, reaching 162.5 billion dirhams in the first four months compared to 118.6 billion dirhams in the same period last year. Banking sector assets grew to 5.593 trillion dirhams by end of June, with credit growth at 2.757 trillion dirhams. Oil prices rose on geopolitical tensions, while gold advanced despite profit-taking pressure.
Details:
Abu Dhabi's non-oil trade performance underscores the emirate's economic diversification strategy. The 37% increase reflects robust demand from both domestic and international markets. Concurrent with this expansion, the UAE banking system reported total deposits of 3.472 trillion dirhams, posting modest growth of 0.3% compared to the previous period. Total bank assets of 5.593 trillion dirhams represented consolidated strength across the financial sector.
Oil markets responded to heightened geopolitical risk on Friday as international tensions threatened energy supply stability. Gold prices continued upward momentum despite investor profit-taking activity following recent gains, with prices reaching their highest levels in over two months during the prior session. These commodity movements reflect broader market sensitivity to macroeconomic data and regional developments.
Corporate earnings painted a mixed picture across UAE-listed companies. Amanah Holding reported net profits of 153.3 million dirhams, achieving 46% growth with revenues rising 24% to 582.5 million dirhams. Al Mal Capital REIT surged 113% to 42.2 million dirhams in profit with 43% revenue growth. Abu Dhabi Ports delivered exceptional results, with profits climbing 64% to 1.489 billion dirhams on revenue growth of 36%. However, Al Ansari Financial Services saw profits decline 29% to 151.3 million dirhams. Real estate development licensing in Dubai accelerated, with 186 new companies registered through mid-August, suggesting sustained sector momentum.
Outlook:
Investors are monitoring geopolitical developments affecting oil supply and commodity valuations heading into the next trading week. The strong earnings trajectory across major UAE corporations and banking system stability suggest underlying economic resilience, though equity market volatility reflects cautious sentiment amid global economic uncertainties.