The Abu Dhabi Securities Exchange (ADX) started February 8, 2025, on a positive note, with its benchmark index climbing 0.2%, mirroring the upward movement in global oil prices, which saw nearly a 1% increase. This boost came in response to new U.S. sanctions aimed at curbing Iranian crude exports to China, a move designed to tighten financial pressure on Tehran by restricting its key revenue source.
Meanwhile, Dubai’s main index faced a modest decline of 0.1%, as some major stocks, including Dubai Islamic Bank (-1.1%) and Salik Company (-1%), weighed down the market. Despite this daily dip, Dubai's index showed a 1.1% gain over the week, whereas Abu Dhabi’s index remained largely stable over the same period.
Key Market Movers in Abu Dhabi
The ADX’s growth was largely driven by strong performances in energy and real estate stocks:
🔹 Adnoc Gas surged 2% after reporting a $5 billion profit for the year, a 13% annual increase, alongside the announcement of a 5% dividend hike.
🔹 Aldar Properties, a major real estate developer, climbed 1.7% as investors anticipated strong results ahead of its upcoming earnings report.
🔹 Dana Gas saw a 0.5% increase, fueled by a 15% jump in fourth-quarter net profit, reaching 143 million dirhams ($38.94 million), with plans to resume dividend payouts.
Oil Prices and Market Sentiment
Oil remains a key driver for Gulf markets, and with Brent crude reaching $74.96 per barrel (a 0.9% increase by 11:05 GMT), investor sentiment in Abu Dhabi’s oil-linked stocks stayed strong. The market’s recent fluctuations reflect investors' reactions to global geopolitical shifts, with earnings season expected to play a crucial role in shaping future trends.
Dubai’s Market Adjustments
While Dubai’s index saw a small decline, it was mainly stock-specific losses rather than a broader market trend. Dubai Islamic Bank and Salik, a key toll operator, saw minor pullbacks, but Dubai’s overall performance remained resilient, with a weekly gain of 1.1%.
Market analysts believe that both Abu Dhabi and Dubai’s stock performance will be dictated by corporate earnings reports and the continuing developments in global oil markets.
UAE’s Expanding Economic Landscape: $50 Billion AI Data Center Deal
Beyond stock market movements, the UAE continues to position itself as a leader in technology and innovation. In a major step toward AI and digital transformation, France and the UAE have agreed on a framework for a 1-gigawatt artificial intelligence data center, with investments ranging between $30 billion and $50 billion.
This deal reflects the UAE’s long-term economic vision, focusing on technology, artificial intelligence, and economic diversification beyond oil.
Outlook: Markets at a Crossroads
As the UAE’s stock markets react to geopolitical shifts, oil price fluctuations, and upcoming earnings reports, investors are closely watching how the market stabilizes in the coming weeks. Abu Dhabi's market is expected to remain energy-driven, while Dubai’s financial and infrastructure sectors could play a larger role in shaping its trajectory.
With continued global uncertainties and rising investments in AI and technology, the UAE is demonstrating resilience and adaptability, further solidifying its status as a financial powerhouse in the Middle East.