Abu Dhabi leads GCC markets in July as earnings bolster sentiment

Vijay Valecha, Sun, Aug 2, 2026 Khaleej Times

Abu Dhabi’s stock market emerged as the Gulf’s strongest performer in July, bucking a broader regional decline as investors rotated into financial and telecommunications stocks amid a busy corporate earnings season and growing confidence in the UAE’s economic outlook.

The FTSE ADX General Index closed July at 9,914.6 points, marking a second consecutive month of gains. The advance was driven by heavyweight sectors including financials, which rose 2.2 per cent, and telecommunications, which gained 5.7 per cent, helping offset weakness in real estate and basic materials.

Strong gains in individual blue-chip names also supported the market. First Abu Dhabi Bank surged 14.1 per cent during the month, while several financial stocks advanced alongside telecom heavyweight e&. In the latest week, buying interest extended to stocks such as Americana Restaurants, NMDC Group, Abu Dhabi Commercial Bank and First Abu Dhabi Bank, helping lift the benchmark for a second straight week.

“Abu Dhabi continues to benefit from strength in large-cap financial and telecom stocks, which are providing a stable foundation for the broader market,” said Vijay Valecha, Chief Investment Officer at Century Financial.

Valecha noted that the ADX has also received support from improving technical indicators. “The ADX General Index has broken above its 200-day EMA around the 9,887 level, supporting a market structure tilted towards the upside,” he said, adding that the 9,947 zone would be the next key resistance level for investors.

The positive market performance comes as the International Monetary Fund reiterated confidence in the UAE economy, forecasting 2.4 per cent growth in 2026 and highlighting the country’s resilience, strong policy buffers and ability to absorb regional geopolitical shocks.

In Dubai, meanwhile, the market experienced a period of consolidation after strong gains earlier in the year. The DFM General Index ended July at 5,795.9 points, although it remains one of the region’s better-performing markets over the longer term. The pullback has left the benchmark about 14.6 per cent below its February peak of 6,785.5 points and pushed valuations to more attractive levels, with the market trading at a 12-month forward price-to-earnings ratio of around 9.8 times.

“After the recent correction, Dubai’s market is trading at levels that could appeal to investors seeking exposure to the UAE’s long-term economic growth story,” Valecha said.

While real estate and consumer discretionary shares weighed on the benchmark in July, several defensive and consumer-focused names recorded gains. Spinneys 1961 Holding, Commercial Bank of Dubai, DEWA, du and Dubai Taxi were among the notable performers, reflecting continued investor preference for companies with resilient earnings profiles.

The spotlight now shifts to earnings from major listed firms . Analysts expect the results to provide a key barometer of economic activity across real estate, utilities, consumer and logistics sectors, potentially shaping the next direction for UAE equity markets.

Khaleej Times