The UAE stock market closed mixed on Friday as investors shifted their focus toward a highly anticipated speech from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Powell’s annual remarks are closely monitored by global markets, as they often provide hints about the future trajectory of U.S. monetary policy. This year, the spotlight is even brighter due to political pressure and criticism from U.S. President Donald Trump, raising questions about the independence of the Federal Reserve.
Abu Dhabi Market Shows Signs of Recovery
Abu Dhabi’s benchmark index edged up 0.1% on Friday, ending a painful 12-session losing streak. Real estate stocks were the primary driver of this rebound. Investment holding company Multiply Group surged 3.7%, while leading developer Aldar Properties gained 1.65%.
According to Joseph Dahrieh, Managing Principal at Tickmill, the Abu Dhabi market remains highly sensitive to fluctuations in oil prices. With ongoing geopolitical uncertainties, particularly regarding energy negotiations, investors are carefully tracking how these developments could influence future crude prices.
Despite Friday’s gains, Abu Dhabi’s performance on a weekly basis remained negative. The index recorded a 0.13% decline for the week, marking its fourth straight week of losses.
Dubai Market Dips on Banking and Utility Losses
In contrast, Dubai’s main index edged 0.03% lower, dragged down by weak performances in the banking and utilities sectors. Emirates NBD Bank, the emirate’s largest lender, dropped 0.8%. Similarly, Emirates Central Cooling Systems Corporation, a key player in Dubai’s utilities space, slipped 1.7%.
These declines outweighed modest gains in other sectors, keeping the Dubai market largely flat for the week. According to LSEG data, Dubai closed the week with little overall change, highlighting the cautious stance investors are taking ahead of Powell’s remarks.
Regional Equities Mirror Broader Caution
Across the Gulf, most equity markets followed a subdued trend, with investors reluctant to take strong positions until there is greater clarity on U.S. monetary policy. This wait-and-see approach reflects the interconnected nature of global financial systems, where decisions made in Washington can ripple through emerging and developed markets alike.
One notable exception was food retailer Spinneys, which rose 3.1% after announcing a strategic expansion plan. The company is set to enter Kuwait through a joint venture with Alshaya Group, extending its footprint across four GCC countries. Under the terms of the agreement, Spinneys will retain a 51% majority stake and lead operations and management.
Oil Prices Provide Some Support
Oil prices, a critical factor for Gulf economies and the UAE stock market, provided a measure of support. Brent crude rose 0.2% to $67.82 a barrel by 1142 GMT, as hopes for a swift peace deal between Russia and Ukraine faded. Energy remains the backbone of the region’s economic performance, and even small shifts in crude prices often translate into significant market movements.
Analysts note that while Abu Dhabi’s index benefited slightly from stronger oil prices, lingering concerns about geopolitical risks and slowing global demand continue to weigh heavily on investor sentiment.
Investor Outlook: Waiting for Powell’s Guidance
The immediate outlook for the UAE stock market depends heavily on the guidance provided by Jerome Powell during his Jackson Hole address. Historically, Powell’s speeches have moved markets worldwide, shaping expectations around interest rate policy and economic growth.
Investors in the Gulf are particularly sensitive to these signals, given the region’s reliance on dollar-pegged currencies and global capital flows. A more hawkish stance from the Fed could pressure liquidity in regional markets, while a dovish tone might encourage renewed optimism.
Weekly Recap
- Abu Dhabi index: +0.1% on Friday, but down 0.13% for the week (fourth consecutive weekly decline).
- Dubai index: -0.03% on Friday, ending the week largely unchanged.
- Spinneys: +3.1% after announcing Kuwait expansion.
- Multiply Group: +3.7%, leading Abu Dhabi gains.
- Oil prices: Brent crude up 0.2% to $67.82 a barrel.
The UAE stock market closed the week on a mixed note, reflecting investor caution ahead of Jerome Powell’s much-anticipated speech. While Abu Dhabi managed to break its losing streak with gains in real estate and investment firms, Dubai’s index slipped slightly due to weakness in banking and utilities.
With oil prices offering only modest support, the regional outlook remains uncertain. Market participants will be closely analyzing Powell’s comments to gauge the next phase of U.S. monetary policy, which could set the tone for Gulf equities in the weeks to come.
