Dubai Stocks Rise on Strong Earnings; Oil Slump Weighs on Abu Dhabi Market
Dubai, UAE – August 15, 2025: Dubai’s stock market closed the week on a positive note, driven by impressive corporate earnings and renewed optimism over high-level talks between the United States and Russia. However, the Abu Dhabi market faced headwinds, weighed down by falling oil prices and banking sector declines.
Strong Corporate Performance Fuels Dubai’s Gains
The Dubai Financial Market General Index (DFMGI) recorded a 0.5% rise on Friday, marking its second consecutive session of growth. The rally was supported by notable gains in the materials, financial, and industrial sectors, signaling renewed investor confidence in the emirate’s economy.
One of the session’s top performers was Salik Company (SALIK.DU), which jumped 3.1% after reporting a remarkable 50% surge in second-quarter profit and revenue. The toll operator also raised its full-year 2025 revenue forecast to between 34% and 36%, reflecting strong traffic volumes and operational efficiency.
Another standout was Emirates Central Cooling Systems Corporation (EMPOWER.DU), which rose 1.2% following solid earnings results. Gulf Navigation Holding (GNAV.DU) also advanced 3.4% after posting its fourth consecutive profitable quarter, with a Q2 net profit of AED 7.4 million ($2.01 million).
Geopolitical Optimism Adds to Market Sentiment
Investor sentiment was further boosted by anticipation of a key meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska. The talks, scheduled for 11 a.m. local time (1900 GMT), are expected to focus on securing a ceasefire agreement in Ukraine. If successful, a second summit with Ukrainian President Volodymyr Zelenskiy could follow.
Markets across the Gulf have been closely watching the developments, as any progress on the geopolitical front could help reduce global tensions and improve investor confidence in emerging markets.
Dubai Market Nears 17-Year High
After reaching a 17-and-a-half-year high in July, the Dubai index had experienced a brief pullback. However, recent gains indicate that the market is regaining momentum and could soon test previous highs again.
“The consistent upward trend in Dubai’s key sectors, coupled with strong quarterly results, is giving the market a solid push,” said a market analyst in Dubai. “If earnings continue this way, the index could easily surpass its earlier peak.”
Oil Price Decline Hits Abu Dhabi
In contrast, Abu Dhabi’s FTSE FADGI Index fell 0.3%, dragged down primarily by the banking sector. Abu Dhabi Commercial Bank (ADCB.AD), the UAE’s third-largest lender, slipped 2.1%, while Abu Dhabi Islamic Bank (ADIB.AD) lost 0.9%.
The decline was largely attributed to falling oil prices, a key driver of the Gulf’s financial markets. Brent crude dropped 0.8% to settle at $66.34 per barrel by 11:34 GMT.
Potential Impact of US-Russia Talks on Oil
Market experts believe that the outcome of the Trump-Putin meeting could have a significant impact on oil prices. Any easing of U.S. sanctions on Russia could lead to higher Russian crude exports, potentially creating more volatility in global oil markets.
“If sanctions are relaxed, we could see a noticeable increase in Russian oil supply, which may put downward pressure on prices,” said Osama Al Saifi, Managing Director for MENA at Traze. “This uncertainty is keeping energy markets on edge.”
Market Summary
- Dubai Index (DFMGI): Up 0.5% to 6,126
- Abu Dhabi Index (FTFADGI): Down 0.3% to 10,222
- Brent Crude: $66.34/barrel (-0.8%)
Looking Ahead
Investors will be keeping a close eye on the Trump-Putin discussions in Alaska, as well as subsequent market reactions. A favorable outcome could strengthen market sentiment across the Gulf, while disappointing results might lead to short-term volatility.
In Dubai, continued earnings strength and sector-wide growth are likely to keep the market on an upward path. For Abu Dhabi, the key challenge remains oil price stability, which will be influenced heavily by global geopolitical developments in the coming weeks.
Conclusion
Friday’s session showcased a clear split between the UAE’s two major markets — with Dubai benefiting from corporate earnings momentum and Abu Dhabi facing pressure from declining oil prices. While geopolitical events could shape the near-term trajectory, the resilience of Dubai’s growth sectors may continue to provide a strong foundation for future gains.
