Report Summary

Markets are navigating shifting interest rate expectations and continued dollar strength, affecting global equities and commodities differently. Locally, Aldar’s strong results and DU’s healthy dividend remain focus points, while Empower posted stable earnings. American tech offers new themes: Google’s multisovereign bond issuance highlights global funding diversification, and Tesla’s price action suggests a short-term upside. Some participants are also eyeing fixed income opportunities like Binghatti’s new issuance. We recommend monitoring USD strength, short-term signals in gold, and local real estate stocks on dips.

UAE Markets

Quick Take – Aldar FY 2025:

Aldar grew strongly in 2025: revenue reached AED 33.8 bn and net profit rose to AED 8.8 bn.
Property sales hit a record AED 40.6 bn, showing strong demand for Aldar’s projects.
The backlog (future revenue already sold) increased to a record AED 71.7 bn, supporting earnings over the next 2–3 years.
Liquidity stayed very strong: AED 14.2 bn cash plus AED 16.4 bn unused bank facilities.
Key watchpoints: higher corporate tax in 2025 affects comparisons with 2024, and performance remains tied to real estate market conditions and project delivery timing.

Quick Take – DU FY 2025:

du’s total sales grew about 9% versus last year, showing more customers and/or higher usage across its main services.
Profit rose faster than sales, meaning the company managed its costs better and kept more money from each dirham earned.
du generated strong cash from day-to-day operations, even after spending more on upgrading and expanding its network.
The company is paying a high dividend relative to its profits, so keeping cash generation strong is important to sustain it.
A key risk to watch is customer collections: the company keeps a large buffer for unpaid bills, which signals ongoing credit/collection pressure.

GCC Credit and Corporate Bond Performance

Robust Primary Demand: The GCC credit market remains highly active, highlighted by Binghatti’s $500 million sukuk which saw massive investor demand (orders over $2.2 billion), while regional spreads stayed stable due to supportive oil prices and high interest in UAE-based liquid credits.
Aldar’s Market Leadership: Following strong earnings, Aldar’s bonds saw significant gains across the curve—particularly in long-term debt—making them a top performer alongside Binghatti’s new 2031 notes, which currently offer an attractive yield of 8.145%.

Global Markets

The Dollar and Gold Divorce: Usually, when the U.S. dollar drops, gold prices shoot up. Today, the dollar fell, but gold didn’t jump as high as expected. This suggests the two are "decoupling," meaning they aren't moving in their usual opposite directions as predictably as before.
Google Plays It Safe: Google’s parent company decided to borrow money by selling bonds in three different currencies (Dollars, British Pounds, and Swiss Francs). This is a clever way to attract international investors who are nervous about keeping all their eggs in the U.S. dollar basket.
Tesla Finding Its Footing: After a bumpy ride recently, Tesla’s stock is stabilizing. Investors are feeling more confident now that Elon Musk is shifting his focus back to the company’s main goals, like making cars and improving core technology.
High Hopes vs. Reality: There’s been a lot of talk about the U.S. economy growing at a massive, record-breaking pace. While this "big talk" got people's attention, most professional experts think these high growth numbers are more like wishful thinking than a likely reality.
A "Wait and See" Mood: Overall, the stock market felt like it was catching its breath. Investors are trying to balance the excitement of new corporate moves against the fact that borrowing money remains expensive due to high interest rates.

News

UAB’s Financial Surge: United Arab Emirates-based United Arab Bank (UAB) reported a 45% jump in net profit for 2025, reaching AED 437.9 million, primarily fueled by a significant 31.5% increase in operating income compared to the previous year.
EMSTEEL’s 2025 Growth: Driven by a "robust" local market, EMSTEEL saw its net income rise 23% to AED 480.9 million, supported by a 16% increase in steel sales and a strong AED 1.2 billion cash reserve.

Investment Recommendations

Tesla (U.S.): Consider buying around the USD 410–420 zone if price action stabilizes, aiming for a short-term target near USD 450. Use USD 405 as a strict stop-loss level.