UAE Stocks Rise as Oil Prices Gain on IEA's Market Outlook

UAE stocks rose on Friday, led by gains in oil prices, while U.S. tariffs and possible sanctions on Russia were in focus. Brent crude rose 0.5% to $68.99 a barrel, and Dubai's main market gained 0.4%, reaching a fresh 17-year peak. Real estate stocks, including Emaar Properties and Tecom Group, drove gains in the index. Abu Dhabi's benchmark index inched 0.2% higher, supported by Multiply Group and Aldar Properties. Adnoc Gas signed a three-year LNG supply agreement with Germany's SEFE, but its shares closed unchanged.

UAE stocks rebounded on Friday, led by gains in oil prices, while geopolitical tensions, including potential U.S. tariffs and sanctions on Russia, remained in focus. Brent crude rose 0.5% to $68.99 a barrel, and Dubai's main market (DFMGI) gained 0.4%, reaching a fresh 17-year peak. Real estate stocks, such as Emaar Properties (EMAAR) and Tecom Group (TECOM), also contributed to the index's performance. Abu Dhabi's benchmark index (FADGI) inched 0.2% higher, supported by Multiply Group (MULTIPLY) and Aldar Properties (ALDAR). Adnoc Gas signed a three-year LNG supply agreement with Germany's SEFE, but its shares remained unchanged.

The gains in oil prices were driven by the International Energy Agency's (IEA) report that the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power-generation needs. This report was published on Friday, the same day as the stock market gains. The IEA also boosted its forecast for supply growth this year, while trimming its outlook for demand growth, indicating a potential surplus in the short term [4].

The UAE's Energy Minister, Suhail al-Mazrouei, stated that the market is absorbing OPEC+ production increases without building inventories, suggesting that the market is hungry for more oil. OPEC+ has been increasing production since April to regain market share and meet U.S. President Donald Trump's demand to keep gasoline prices lower. The group has been adding production at a rate of 138,000 barrels per day (bpd) in April, 411,000 bpd in May, 411,000 bpd in June, and 548,000 bpd in July, with another increase planned for August [1].

However, geopolitical risks, such as U.S. tariffs and potential sanctions on Russia, also weighed on the market. President Donald Trump has threatened to impose a 10% tariff on imports from the BRICS group of emerging economies, including Brazil, Russia, India, and China, and has also threatened a 200% import tax on pharmaceuticals [5]. These threats have added uncertainty to the global economy and markets, which have already experienced months of volatility.

Despite the geopolitical risks, the UAE's stock market showed resilience, with Dubai's index recording a 1.8% gain for the week and Abu Dhabi's index rising by 0.8% [2]. The market's performance was driven by gains in oil prices and real estate stocks, as well as the LNG supply agreement signed by Adnoc Gas and SEFE.

References:
[1] https://www.oilandgas360.com/uae-says-oil-markets-are-absorbing-more-barrels-without-stocks-rising/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3T80FM:0-uae-stocks-rise-as-oil-gains-on-iea-s-market-outlook/
[4] https://www.zawya.com/en/economy/global/oil-edges-higher-as-investors-weigh-market-outlook-yw7zzdh3
[5] https://www.cnn.com/2025/07/09/business/tariffs-trump-letters-threat-brics-intl-hnk