Dubai, United Arab Emirates – UAE financial markets closed on Monday, July 21, 2025, with mixed performance, amid continued anticipation of listed companies’ second-quarter results and investor sentiment impacted by global economic developments, particularly trade tensions between the United States and its trading partners.
- Limited decline in the Abu Dhabi market: The Abu Dhabi Securities Exchange (ADX) index recorded a slight decline of 0.2%, with cautious trading, awaiting financial disclosures, and warnings of declining liquidity and weak trading volumes.
Limited decline in the Abu Dhabi market
The Abu Dhabi Securities Exchange (ADX) index registered a slight decline of 0.2%, amid cautious trading and the absence of direct catalysts. Investors are awaiting financial disclosures from major companies and banks, with a general trend towards reducing risks ahead of the earnings season.
Despite the relative stability, liquidity saw a significant decline compared to last week’s sessions, indicating a partial reluctance to trade until the financial picture for a number of leading stocks becomes clearer.
- Profit-taking on the Dubai Financial Market: The Dubai Financial Market index fell 0.8% due to profit-taking on major stocks, despite positive results in neighboring markets, with gains in shares of companies such as Air Arabia.
Profit taking in the Dubai Financial Market
The Dubai Financial Market (DFM) general index declined by 0.8%, affected by profit-taking targeting major stocks in the banking sector, particularly Emirates NBD. This decline comes despite positive sentiment bolstered by strong earnings in neighboring Gulf markets, particularly from major Saudi banks.
In contrast, Air Arabia’s stock achieved notable gains of around 5% after the company announced it had won the contract to operate a new tourist airline in Saudi Arabia as part of a strategic plan extending through 2030, propelling the stock to new record highs.
Gulf markets and oil performance
Gulf markets generally experienced mixed performance, as strong financial results from Saudi banks and companies were offset by growing concerns about the potential repercussions of US tariffs and their impact on global trade.
Meanwhile, oil prices maintained gains above $69 a barrel, supported by optimistic forecasts from the International Energy Agency for increased demand during the summer. This stability is expected to positively impact the performance of energy and real estate-related stocks in the UAE, particularly ADNOC Gas and Emaar Properties.
Future outlook
Analysts believe that UAE markets are moving within a range, influenced by a delicate balance between positive expectations driven by corporate earnings and external pressures related to global markets and international trade. Markets are likely to witness further activity if financial results from the banking and real estate sectors exceed expectations.
Investors are closely monitoring the movements of leading stocks in both Abu Dhabi and Dubai, along with oil indicators and global economic data, to determine trading trends for the current week.
