Dubai’s market increases due to oil price surge, while Abu Dhabi’s market is suppressed by FAB.

Dubai's market increases due to oil price surge, while Abu Dhabi's market is suppressed by FAB.

Dubai Stock Markets Rise on Upbeat Demand Growth Forecasts from OPEC and IEA


According to recent reports, stock markets in Dubai experienced a boost on Friday as demand growth forecasts from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) raised oil prices. However, Abu Dhabi’s index faced some challenges due to the performance of lender FAB.

It is worth noting that the IEA issued a warning stating that global oil inventories could decline significantly throughout the remaining months of 2023. This comes after OPEC announced on Thursday their expectation of a 2.25 million barrels per day (bpd) increase in global oil demand in 2024, compared to the 2.44 million bpd growth projected for this year.

At 1206 GMT, Brent crude rose by 57 cents, equivalent to a 0.7% increase, reaching $86.96 per barrel. This positive oil price movement contributed to the rise in Dubai’s main share index, which had been declining in the past four sessions.

Emirates NBD Bank, Dubai’s largest lender, experienced a remarkable increase of over 3%. Additionally, toll operator Salik Company recorded a 2% gain following their second-quarter earnings report. Emaar Properties, the largest listed real estate firm in Dubai, also saw an increase of more than 0.7% after releasing their second-quarter earnings report.

Despite the positive developments, Dubai’s index fell by 0.5% throughout the week. On the other hand, Abu Dhabi’s benchmark index faced a decline of 0.3% for a third consecutive negative session. This was primarily influenced by a 1.1% decrease in the country’s largest lender, First Abu Dhabi Bank (FAB), and a 1.6% drop in Alpha Dhabi Holding.

To provide a broader perspective, let’s summarize the market movements in both cities:

Table 1: Market Movements

Index Dubai Abu Dhabi
Daily Movement +0.4% -0.3%
Weekly Movement -0.5% +1%

Despite the week-week decline, it is essential to note that Abu Dhabi’s index managed to end the week on a positive note with a 1% overall increase.

In conclusion, the stock markets in Dubai saw a rise as a result of the positive demand growth forecasts from OPEC and the IEA. These forecasts contributed to an increase in oil prices, benefiting various sectors in Dubai’s market. However, Abu Dhabi faced some challenges, primarily due to the performance of FAB. It will be interesting to observe how these market movements progress in the coming weeks.