UAE Stocks Climb to 17-Year High Amid Oil Recovery and Investor Optimism


UAE stock markets reached a significant milestone this week, with Dubai’s main equity index touching a 17-year high. The rally comes on the back of strengthening oil prices, robust investor sentiment, and continued momentum across sectors including real estate, logistics, and banking.

The Dubai Financial Market (DFM) rose by approximately 0.4% in early trading on Thursday, building on months of steady gains. Analysts attribute the rise to the International Energy Agency’s latest market outlook, which suggests a more balanced oil supply-demand dynamic in the second half of 2025.

Market participants also noted strong institutional buying activity, with increased foreign inflows from Gulf Cooperation Council (GCC) neighbors and Asia-based funds. Real estate shares continued their ascent, buoyed by resilient demand in Dubai’s luxury housing segment and the rise of AI-driven property platforms.

Investor Confidence at Multi-Year Peak

“This is a clear signal that investor confidence is returning to pre-2008 levels,” said Rania Harb, a senior analyst at Gulf Invest. “Dubai’s market is benefiting from strong corporate earnings, low inflation, and the government’s aggressive push for digital and green transformation.”

The Abu Dhabi Securities Exchange (ADX) also recorded modest gains, supported by energy and industrial stocks. With Brent crude trading above $90 per barrel, hydrocarbon-linked companies are reporting improved margins and long-term contract wins.


Outlook Remains Positive

Market experts forecast continued strength in UAE equities, citing upcoming earnings announcements, potential IPO activity, and greater regulatory clarity in key sectors such as fintech and alternative energy.

However, some caution that global macroeconomic uncertainties—including potential trade tensions and fluctuating interest rates—could add volatility in the months ahead.

For now, UAE’s stock markets are showing resilience and strong momentum, reinforcing their position as a regional financial hub in a fast-evolving global economy.

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