Equity markets in the United Arab Emirates gained on Friday, as U.S. and Iran start talks in Pakistan and Israel seeks talks with Lebanon, raised hopes for easing Middle East tensions and reducing risks of disruption in the Strait of Hormuz.
Delegations from Tehran and Washington are set to hold talks in Pakistan on Saturday.
Israeli Prime Minister Benjamin Netanyahu said on Thursday he is seeking direct talks with Beirut, a day after the worst bombardment of the war killed more than 300 people in Lebanon and placed Donald Trump’s U.S.-Iran ceasefire in jeopardy.
Dubai’s main market reversed early losses and closed 0.4% higher, helped by a gains in industrial and financial stocks.
Low-cost carrier Air Arabia jumped 4.8%, while top lender Emirates NBD Bank climbed 3.4%.
Abu Dhabi’s benchmark index edged 0.02% up, supported by a 4.1% rise in hyper market operator Lulu Retail Holding and a 3.9% surge in Dana Gas.
Gains in the index were limited by a 3.1% decline in real estate giant Aldar Properties and 0.5% drop in UAE’s richest firm International Holding Company.
Dubai has restricted foreign airlines to just one daily flight to its airports until May 31 due to the Iran crisis, igniting revenue loss fears among Indian carriers that had planned more flights than airlines from any other country, letters show.
Dubai index rose 4.2% for its biggest weekly gain in more than 10 months, while Abu Dhabi posted a weekly gain of 2.5%, according to LSEG data.
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