UAE stocks end mixed as easing Iran tensions lift Dubai

The United Arab Emirates' stock markets concluded with mixed results on Friday due to easing tensions between Iran and the United States. President Donald Trump stated that Washington would not launch an attack on Iran before the upcoming US midterm elections. The two nations were reportedly engaged in productive talks to resolve the conflict and resume operations at the strategic Strait of Hormuz, a crucial global shipping channel. However, Iran's latest proposal was dismissed by Trump.

Despite the positive developments, Dubai's benchmark index ended the day 0.3% higher, breaking a three-day decline streak. Most of its components closed in the green. Notable gains included Emirates NBD, the country's largest bank, which surged 2.1%, and Emaar Properties, a major developer, which rose 1.1%.

In Abu Dhabi, the index saw a slight decline, dragged down by losses in sectors like basic materials, consumer staples, telecommunications, and utilities. First Abu Dhabi Bank, the largest lender in the UAE, fell 0.6%, while ADNOC Gas and Aldar Properties saw gains of 1.5% and 1%, respectively. The Abu Dhabi index experienced its third consecutive weekly loss, while Dubai's index declined for two consecutive weeks, according to LSEG data.

George Pavel, general manager at Naga.com Middle East, commented on the outlook, highlighting the importance of concrete diplomatic timelines and material updates that could alleviate tensions and improve shipping conditions in the Strait of Hormuz. He emphasized that any escalation could keep UAE stock markets under pressure, while traders are also closely monitoring third-quarter earnings reports, as strong results could bolster market performance.