Overview:
Regional and international equity markets closed the week with modest declines as investors assessed mid-year corporate earnings and monetary policy signals. Abu Dhabi's non-oil foreign trade reached 162.5 billion dirhams in the first four months of 2026. Chinese economic data showed resilience with a current account surplus of 195.1 billion dollars in the second quarter and 8 percent growth in lending to small businesses. US consumer confidence declined for the first time in three months, reflecting concerns over inflation and business conditions.
Details:
UAE stock indices ended the week lower, with the Abu Dhabi Securities Exchange declining 0.47 percent and the Dubai Financial Market falling 0.99 percent as earnings season drew to a close. The Emirates Insurance Company reported first-half net profits of 75 million dirhams, up 9 percent year-on-year, with service revenues rising 28 percent to 56.5 million dirhams. Uras Construction achieved net profits of 89.3 million dollars in the first half, representing 43.6 percent growth on revenues of 3 billion dollars and attributable profits to shareholders of 115.3 million dollars.
In tech sector developments, Nvidia disclosed holdings of approximately 51 billion dollars in SpaceX and Intel combined. SpaceX completed its acquisition of Cursor, an artificial intelligence software startup specializing in code generation, in a transaction valued at 60 billion dollars. Alibaba's open-source AI model Qwen achieved 3 billion downloads within six months, surpassing models from Meta, Google, and Alphabet by adoption metrics.
Oil prices rose following US statements on maintaining sanctions pressure against Iran. Gold prices advanced despite profit-taking activity after reaching levels not seen in over two months, driven by inflation data concerns. Global equity markets showed divergence, with Asian bourses leading gains supported by technology stocks, while US indices finished mixed near equilibrium levels.
Outlook:
Investors are monitoring Federal Reserve deliberations on further monetary tightening to counter inflation risks and their impact on corporate profitability during the second half of 2026. Attention remains on Chinese economic stimulus effectiveness and whether global central banks will pursue coordinated policy adjustments in response to diverging inflation and growth trajectories across major economies.