UAE shares decline on weak earnings and regional tensions

The stock markets in the United Arab Emirates saw a decline on Friday due to weak corporate earnings and escalating regional tensions. Recent attacks by Yemen’s Houthis on Saudi oil facilities and airports, as well as possible tanker strikes in the Strait of Hormuz, contributed to investor unease. A senior US military official met with US President Donald Trump at the White House on Thursday to discuss potential military responses to Iran.

This development, reported by the Wall Street Journal citing US officials, further unsettled markets.

Dubai’s main index dropped 0.8%, marking a third day of losses. This decline was driven by heavy losses in real estate and financial sector stocks. Dubai’s top lender, Emirates NBD Bank, suffered the greatest percentage decline at 1.1%. Additionally, Emaar Properties, a major developer, saw its stock price fall by 0.9%.

The Dubai Financial Market, the exchange operator, experienced a steep 1.6% drop. This followed the firm reporting a 4.3% decline in third-quarter net profit and 4.1% decrease in total income. DIP Holding, a Dubai Investments-owned company, was expected to price its IPO below the top range of its indicative price. Meanwhile, Abu Dhabi’s benchmark index slipped by 0.1%, dragged down by a 3.9% drop in Abu Dhabi Islamic Bank and a 1.3% decrease in Abu Dhabi National Oil Company for Distribution.

Oil prices rose on Friday, as traders anticipated a potential escalation in the US-Iran conflict following the US midterm elections. Brent crude increased by 2.3%, reaching $117.56 a barrel. The Abu Dhabi index recorded a 1.3% weekly loss, while Dubai’s index gained 0.6% for the week, according to data provided by LSEG.