Stocks on DFM and ADX aim for a favorable closing amidst this challenging week
UAE Stocks Soar Amidst Global Market Tumult
pilots Dubai: Amidst a rocky week for global markets, the UAE's stock exchanges, DFM and ADX, managed to close on a promising note. The DFM general index surged by 1.5% on Friday, with Union Properties (up 6%) and the two Emaar stocks leading the charge. Banking stocks, too, were in high spirits.
ADX saw its wide index near a 1% increase, with significant gains for ADNOC L&S (up 5.4%) and ADNOC Gas (2.4%). Contrary to expectations, the Israel-Iran situation seemed to have little impact on investor’s minds, at least on Friday.
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The UAE's stocks are mirroring an upward trajectory similar to many Asian markets that have climbed earlier in the day. The Sensex jumped a substantial 0.99%, or 800 points, and Hang Seng shot up 1.26%. Even Saudi Tadawul ended the week in the green, with a minimal gain. (flynas, the airline that listed during the week, closing at SR77.4, slightly below its IPO price of SR80).
As H1-2025 draws to a close, UAE and Gulf stocks have shown a remarkable resilience in holding their ground against the economic and geopolitical hurdles that have beset global markets.
"Capital markets in the GCC demonstrated resilience in the first quarter of the year, with IPO proceeds soaring by 33% over the previous year, despite a slowdown in issuances worldwide," according to a statement from HSBC. "Similarly, M&A volumes saw their highest quarter in three years, thanks to activity in Saudi Arabia and the UAE." (This week, HSBC held a GCC Exchanges Conference in London).
Nabeel Albloushi, Head of Markets & Securities Services, Middle East North Africa & Turkey at HSBC Bank Middle East, asserts, "The UAE offers one of the most compelling growth stories. The share of global emerging markets funds with UAE exposure has climbed from 35% to 65% since mid-2021. The breadth of sectors coming to the market - from retail and logistics to renewables - not only reflects deepening investor confidence but also gives global institutions the diversity they desire as they rebalance portfolios."
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In essence, the robust performance of UAE stocks in 2025 is due to strong economic foundations, investor confidence, government reforms, and sectoral momentum. This has made the UAE an attractive destination for global investors seeking stable growth and diversification.
- The surge in the UAE's stock market, as showcased by the DFM and ADX, indicates an interest in investing in businesses, such as Union Properties and Emaar, regardless of global market instability.
- The resilience of the UAE and Gulf stocks in H1-2025, despite global market challenges, suggests a flourishing finance sector and an attractive business environment for investors.
- With increasing global investment in the UAE, driven by factors like government reforms and sectoral momentum, the country has become a desirable destination for investors seeking stable growth and diversification in their portfolios.
