Dubai leads UAE stocks higher on bank earnings as weekly losses highlight cautious mood

UAE equities ended higher on Friday, with Dubai outperforming regional peers on the back of strong quarterly earnings from major lenders, even as broader weekly performance remained negative amid persistent geopolitical uncertainty.

The Dubai Financial Market General Index rose 0.7%, recovering from two consecutive losing sessions as banking stocks drove gains across the index.

Leading the advance, Emirates NBD gained 2%, supported by investor reaction to its first-quarter results showing a 3% rise in profit to 6.4 billion dirhams ($1.74 billion). State-linked utility operator Dubai Electricity and Water Authority also posted gains, contributing to the positive tone.

Abu Dhabi’s market also reflected earnings-driven strength, with Abu Dhabi Commercial Bank reporting a 37% jump in first-quarter net profit to 3.36 billion dirhams, alongside an 18% increase in operating income year-on-year.

Despite Friday’s gains, sentiment remained fragile on a weekly basis. Dubai equities recorded a 2.2% decline, marking their first weekly loss after five straight weeks of gains, while Abu Dhabi shares fell 1.3%, according to LSEG data.

Analysts said strong bank earnings continued to support confidence in underlying domestic economic resilience, encouraging selective buying in financial stocks even as broader risk appetite stayed muted.

Geopolitical risk remained the dominant overhang. Investors continued to monitor developments linked to the regional conflict, which has kept sentiment cautious across Gulf markets.

Energy prices added another layer of volatility. Brent crude fell 0.9% to $104.16 per barrel, pressured by reports suggesting diplomatic movement, including expectations that Iran’s Foreign Minister Abbas Araqchi could travel to Islamabad for discussions involving potential U.S.–Iran peace talks.

Overall, while earnings strength provided near-term support to UAE equities, markets remained sensitive to geopolitical headlines and oil price swings that continue to shape regional risk sentiment.