Overview:

UAE equity markets declined Monday amid Middle East tensions, while non-oil exports accelerated to near historic levels. Oil prices surged above 90 dollars per barrel on US-Iran escalation, lifting the US dollar and pressuring regional stocks. Banking and fintech innovations gained momentum, with First Abu Dhabi Bank launching a new debit card and Islamic banking assets expanding sharply across the emirates.

Details:

UAE non-oil foreign trade reached nearly 2 trillion dirhams during the first six months of 2026, approaching a historic threshold for the first time, according to official review of external trade performance. The Abu Dhabi Securities Exchange and Dubai Financial Market both retreated Monday, with caution stemming from heightened geopolitical developments in the region affecting investor sentiment across equities.

Oil markets surged 3 percent Monday, with Brent crude exceeding 90 dollars per barrel amid expanded military operations between the United States and Iran in the Middle East. The dollar appreciated modestly against major currencies in Asian trading, while gold remained stable as investors balanced escalation assessments against interest rate expectations. Gasoline prices in the United States crossed above 4 dollars per gallon, reflecting renewed conflict dynamics.

First Abu Dhabi Bank introduced a new digital debit card designed to enhance secure payment capabilities and support domestic electronic transactions. Islamic banking assets in the emirates reached 989 billion dirhams by end of April, representing 18 percent of total banking sector assets, with nine standalone Islamic banks and fifteen Islamic windows operating across traditional institutions. The sector generated 23.4 percent of total market financing, reflecting accelerating growth trajectories within the financial system.

Outlook:

Investors are monitoring whether escalating Middle East tensions sustain oil price momentum and dollar strength, potentially constraining equity valuations across emerging markets. Domestic fintech and payment system initiatives are being tracked as indicators of financial sector digitalization and sovereign monetary infrastructure resilience amid global market volatility.