Stock markets in the United Arab Emirates ended higher on Friday after the UAE Central Bank cut interest rates by 25 basis points, mirroring the U.S. Federal Reserve’s move earlier this week. The decision boosted investor sentiment, sparking optimism for stronger growth across the Gulf region.
Dubai’s main index advanced 0.7%, lifted by strong performances in the real estate and industrial sectors. Emaar Development jumped 4.9%, while Gulf Navigation Holding surged 6.8%. Emaar Properties also gained 1.1% after announcing it will not sell a stake in its Indian subsidiary but is considering joint ventures with top Indian firms, including the Adani Group.
Meanwhile, Abu Dhabi’s benchmark index closed 0.3% higher, supported by a 1.5% rise in Adnoc Gas and a 3% increase in Emirates Telecommunications Group. Analysts noted that Abu Dhabi’s market remains well-positioned after the rate cut, though fluctuating oil prices continue to pose risks.
On a weekly basis, Abu Dhabi recorded a 1.1% gain, while Dubai edged down 0.1%, according to LSEG data. Oil prices, a key driver of Gulf equities, slipped slightly, with Brent crude trading at $67.47 per barrel.
The UAE Central Bank also revised its 2025 GDP growth forecast to 4.9%, up from 4.4%, on the back of higher oil output and robust expansion in non-oil sectors.
