Overview:
UAE stock indices retreated at the start of trading Monday, with the Dubai Index falling 0.28 percent and the Abu Dhabi Index declining 0.20 percent. Real estate and banking stocks led the downward pressure. Oil prices rose modestly amid continued uncertainty over Strait of Hormuz reopening, while gold prices edged lower as investors awaited U.S. inflation figures. Regional corporate earnings remained strong, with 71 listed banks and companies reporting combined first-half profits of approximately 108.9 billion dirhams.
Details:
The Abu Dhabi Securities Exchange maintained significant scale during the first half of 2026, with a total market value of 2.8 trillion dirhams supported by 171 billion dirhams in trading volumes. The exchange attracted approximately 30,000 new investors, marking a 7.1 percent increase, while foreign investment flows reached 1.4 billion dirhams, up 13.7 percent year-on-year. Adnoc for Gas reported first-half net profits of 6.4 billion dirhams and announced quarterly distributions of 3.45 billion dirhams, demonstrating sustained operational performance in the energy sector.
On the global commodity front, Brent crude rose 0.14 percent to 84 dollars per barrel, while West Texas Intermediate climbed 0.03 percent to 78.22 dollars. Gold prices declined from recent highs, trading near 4,300 dollars per ounce as investors locked in profits following a seven-week peak. The U.S. dollar stabilized near two-month lows following weak American employment data released Friday, with the Japanese yen holding steady at 158 against the dollar.
Sectoral developments included telecommunications infrastructure investment of 2.71 billion dirhams across the first half, with Etisalat investing 1.672 billion dirhams and Du increasing capital expenditure by 12.7 percent. Dubai real estate transactions totaled 2.3 billion dirhams across 910 deals on Monday, comprising 1.7 billion dirhams in sales, 450 million dirhams in mortgages, and 143 million dirhams in gifts.
Outlook:
Investors are monitoring U.S. consumer price data this week for signals on potential Federal Reserve policy adjustments. Regional sentiment remains contingent on resolution of Strait of Hormuz navigation corridor discussions, which continue to influence crude valuations and broader Middle Eastern asset performance.