Overview:

Arab Gulf markets ended July on a positive note, with the Abu Dhabi Securities Exchange rising 0.36 percent and the Dubai Financial Market advancing 0.07 percent, supported by gains in leading equities. Globally, US technology giants including Microsoft, Apple, and Amazon reported second-quarter results that surpassed market expectations, driving broad strength across US and Asian indices. Oil prices edged lower on Friday but remain positioned for a monthly gain of approximately 20 percent.

Details:

The Abu Dhabi Securities Exchange closed at 9,914.62 points while Dubai's index settled at 5,795.93 points, reflecting resilient demand for financial services stocks. In the UAE banking sector, Abu Dhabi banks reported first-half 2026 net profits of 21.25 billion dirhams, representing an 11 percent increase compared to 19.5 billion dirhams in the corresponding period of 2025. Separately, the rating agency Capital Intelligence affirmed the credit ratings of Ras Al Khaimah National Bank at A with a stable outlook, underscoring the strength of the financial system.

In the international arena, Microsoft achieved its largest single-day market capitalization gain on record, adding approximately 500 billion dollars following earnings that exceeded Wall Street projections. Apple reported quarterly sales exceeding 109 billion dollars, while Amazon's cloud services division recorded a 37 percent revenue increase to 42 billion dollars, alleviating market concerns about the technology sector's growth trajectory. European equities also reached record levels, with the Stoxx 600 index advancing 0.9 percent.

Oil prices retreated on Friday but remain on track for a monthly appreciation of around 20 percent as supply flows through critical maritime corridors. Gold closed near 4,100 dollars per ounce, posting the first monthly gains in five months as investors evaluated geopolitical risks between the United States and Iran.

Outlook:

Investors are monitoring whether momentum in technology earnings will sustain broader market gains into August. Central bank decisions—including signals from US Federal Reserve officials favoring rate increases and the Bank of Japan's measured stance—will shape currency markets and capital flows into the final quarter of 2026.