UAE Stock Markets Close Higher on Oil Price Surge

Stock markets in the United Arab Emirates concluded trading on a positive note Friday, buoyed by rising oil prices. The increase in oil prices was fueled by optimism surrounding a potential trade agreement between the United States and the European Union, coupled with concerns about supply due to U.S. sanctions aimed at curbing Iranian oil exports.

U.S. President Donald Trump and Italian Prime Minister Giorgia Meloni convened in Washington, where they voiced confidence in resolving trade disputes that have strained U.S.-Europe relations.

Oil prices, a crucial factor for the Gulf’s financial markets, saw a 3% increase, reaching $67.85 a barrel by 1110 GMT.

Dubai’s primary market experienced a 0.7% upswing, with the majority of stocks showing gains.

Salik Company, a toll road operator, saw its shares jump by 1.4%, while Emirates NBD Bank, a leading lender, bolstered the index with a 0.8% increase.

According to Joseph Dahrieh of Tickmill, the Dubai market’s strong fundamentals and potential easing of global trade tensions could further bolster its recovery.

The Dubai index showed a weekly gain of 2.6%, marking its most significant weekly increase this year. Abu Dhabi’s index also saw a positive trend, registering a 1.3% weekly gain following two weeks of declines, according to LSEG data.

Abu Dhabi’s benchmark index closed 0.2% higher, recovering from a two-session slump, supported by a 2.3% surge in Abu Dhabi Commercial Bank and a 1.5% increase for developer Aldar Properties.

Adnoc Drilling, a state-owned oil services company, saw its shares rise by 1.2% after securing a $1.63 billion five-year integrated drilling services contract from Adnoc Offshore.

Other Gulf markets remained closed on Friday.