UAE stock markets ended higher on Friday, gaining for the second week, with Dubai at a six-week high and outperforming its regional peer Abu Dhabi, on prospects of peace in the Middle East.
U.S. and Iran are likely to hold peace talks over the weekend in Pakistan, while a 10-day ceasefire between Lebanon and Israel has taken effect. Hopes of peace have driven a global stock rally, while oil, a key component of the Gulf’s economies, was pinned below $100 a barrel.
Brent crude was down 3.13% at $96.28 a barrel by 1144 GMT.
U.S. President Donald Trump expressed confidence that an agreement with Iran could soon be reached to end the conflict, and urged the Tehran-aligned Hezbollah group to hold its fire.
Any credible path to easing maritime risks in the Strait of Hormuz would likely bolster regional risk appetite and support economic growth, said George Pavel, general manager at Naga.com Middle East.
Dubai’s main share index rose 1%, led by gains in heavyweight real estate and financial stocks. It gained 4.8% for the week, its biggest in more than nine months.
Top lender Emirates NBD Bank jumped 2% on Friday, while blue-chip developer Emaar Properties rose 1.1%.
Abu Dhabi’s benchmark index edged up 0.03% and logged a weekly rise of 0.8%.
The index was supported by a 0.5% increase in Aldar Properties after the company announced the delivery of 9,000 value rental homes in Mohamed Bin Zayed City and Baniyas, with a gross development value of 2.8 billion dirhams ($762.32 million).
UAE’s largest lender First Abu Dhabi Bank also rose 1.6%.
The index gains were tempered by a 0.5% decline in its largest firm, International Holding Company, and a 0.6% fall in UAE’s third-largest lender Abu Dhabi Commercial Bank.
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