Report Summary

The Iran war enters its third week with no resolution in sight, and markets are continuing to feel the pressure. US stocks fell for the third week in a row on Friday, with the Dow down 0.26%, the S&P 500 off 0.61%, and the Nasdaq dropping 0.93% — their worst weekly run in nearly a year. Over the weekend, the US struck Iran's main oil export facility at Kharg Island, pushing oil prices to a high of $106.50 a barrel in early Monday trading before settling back to around $104. US stock futures are pointing slightly higher this morning, though the mood is cautious. Trump has asked allied countries to help escort ships through the Strait of Hormuz to get oil moving again — but so far, few have stepped forward.

UAE Markets

Overview of Abu Dhabi and Dubai

A Difficult But Temporary Patch: UAE markets have been caught up in the broader regional turbulence, which is understandable given the circumstances. The ADX General Index closed at 9,480 points on Friday, down around 11% over the past month. That said, the index is still slightly ahead of where it was a year ago — which, in the middle of a regional war, speaks to the underlying strength of the market.
Beaten-Down Names Worth Watching: Well-known companies like Emaar Properties, Emaar Development, Aldar Properties, Emirates NBD, and First Abu Dhabi Bank have all dropped significantly from their recent highs. These are solid, well-run businesses, and sharp pullbacks like this have historically created interesting entry points for investors who are willing to look beyond the current noise. A clearer improvement in the regional picture will likely be the trigger for a recovery, but it is not too early to start paying attention.
The Long-Term Story Has Not Changed: The UAE economy is in good shape — government finances are healthy, non-oil sectors are growing, and big infrastructure projects continue to move forward. Real estate and banking stocks are well-placed to bounce back when things settle down. For now, patience is key, but the case for UAE equities over the medium and long term remains firmly intact.

Global Markets

Third Week of Losses on Wall Street: US stocks have now fallen for three weeks in a row. The Dow lost around 2% for the week, the S&P 500 dropped 1.6%, and the Nasdaq shed 1.3% — all closing at their lowest points of 2026. Monday morning futures are nudging higher, but one bad headline from the Gulf could easily flip that around.
Oil Keeps Climbing: Brent crude closed Friday above $103 a barrel and jumped as high as $106.50 early Monday after the US hit Kharg Island over the weekend. Oil is now up roughly 40% since the war started on February 28. The Strait of Hormuz — the narrow channel that normally carries about one-fifth of the world's oil supply — is still essentially shut, with fewer than five ships getting through per day compared to 138 before the conflict. Until that changes, oil prices are unlikely to come down in any meaningful way.
Inflation and Rate Cut Hopes Fade: Expensive oil means higher prices for almost everything else — fuel, food, shipping, and manufacturing costs. Markets have now largely given up on the idea of interest rate cuts anytime soon, with traders pricing in almost no chance of the US Federal Reserve moving at its next meeting. Higher borrowing costs on top of higher energy prices are a tough combination for most businesses and households to absorb.
Where to Hide: Energy companies like Exxon and Chevron are among the few clear winners right now, as their profits rise in line with oil prices. Defence stocks are also holding up well. Beyond those two areas, most of the market is struggling, and investors are largely sitting on their hands waiting for the situation to become clearer.

News

The General Assembly of RAK Properties has officially approved the board's recommendation to not distribute cash dividends for the fiscal year 2025.