Overview:

UAE equity markets closed higher Thursday driven by robust first-half profitability across the banking sector. Multiple lenders reported double-digit profit growth, with the Abu Dhabi Securities Exchange rising 0.70 percent and the Dubai Financial Market gaining 0.42 percent. Concurrently, crude oil prices surged to six-week highs following reports of attacks on oil tankers off Saudi Arabian waters, elevating Middle East supply-chain concerns and supporting both energy stocks and gold as safe-haven assets.

Details:

The banking sector delivered exceptional results in the first half of 2026. Abu Dhabi Commercial Bank reported profits of 6.73 billion dirhams, a 34 percent increase, with loans rising 18 percent to 445 billion dirhams and deposits growing 14 percent to 527 billion dirhams. Emirates National Bank of Dubai achieved 12.9 billion dirhams in net profit with a 3 percent increase, while loans surged 35 percent to 771 billion dirhams. First Abu Dhabi Bank declared 10.73 billion dirhams in earnings, and Ras Al Khaimah National Bank reported 1.71 billion dirhams with a 25 percent jump.

Brent crude oil surpassed the 100-dollar-per-barrel threshold for the first time since May, driven by reports of attacks on vessels in the Persian Gulf region. The price surge reflected broader geopolitical instability and prompted concerns among international refiners about third-quarter production constraints. Gold maintained strength near 4,132 dollars per ounce as investors sought protection against volatility. The dollar held steady, supported by ongoing US-Iran tensions, while the Japanese yen weakened to 163 against the dollar.

International technology firms also influenced market momentum. Alphabet and Tesla shares declined following announcements of elevated artificial intelligence spending plans, raising investor concerns about margin pressures despite revenue growth. Samsung unveiled a larger foldable handset while increasing prices on existing models.

Outlook:

Market participants are monitoring escalating Middle East tensions and their impact on global energy supplies and inflation expectations. The strong banking earnings provide support for UAE equity valuations, though oil volatility and technology sector weakness may create near-term headwinds for broader market sentiment.