UAE shares fall as geopolitical uncertainty keeps traders cautious

Stock markets in the United Arab Emirates experienced a decline on Friday as geopolitical concerns in the region dampened investor confidence and left traders hesitant. Abu Dhabi's leading index plummeted 1.3 percent, reaching an 18-month low, primarily due to a 1.7 percent drop in Aldar Properties, a prominent real estate company.

International Holding, the largest listed conglomerate in the UAE, plummeted 2.8 percent to its lowest point in over four years following a 28 percent decline in its third-quarter net profit, which plummeted to 6.22 billion dirhams (approximately $1.69 billion) from 8.70 billion dirhams the previous year.

Experts suggest that UAE stock markets will likely remain vulnerable to regional security situations, as investors remain vigilant for any diplomatic progress or agreements aimed at improving shipping conditions in the Strait of Hormuz. Mahmoud Mashal, a senior market analyst at VT Markets Dubai, elaborated on this sentiment.

Dubai's primary index slipped 0.3 percent, marking a break from a four-day winning streak, primarily due to losses in financial and industrial sector stocks. Key lender Emirates NBD and toll operator Salik Company both saw declines of 1.3 percent and 1.1 percent, respectively. Conversely, Emaar Development managed a modest gain of 1.2 percent after its parent company, Emaar Properties, announced plans to make a voluntary cash offer for up to 100 percent of its shares, potentially valued at up to $3.43 billion.

Emaar Properties, which holds nearly 79 percent of Emaar Development, intends to offer 15 dirhams per share for the remaining stake through this voluntary cash offer, as disclosed in a company filing.

Brent crude prices rose by 0.5 percent, reaching $98.73 per barrel as of 11:55 GMT. Over the week, Abu Dhabi's index experienced a 0.8 percent decrease, while Dubai's index soared 4.4 percent, marking its largest weekly gain in over six months, according to LSEG data.