06/07/2026 12:44 AST
The UAE's stock markets emerged as a rare bright spot in the Gulf during June, delivering gains even as geopolitical tensions, falling oil prices and global market volatility weighed on investor sentiment across most regional and international bourses.
According to a report by Kamco Invest, Dubai led the advance, with the DFM General Index rising 3.4 per cent during the month, making it the best-performing market in the GCC. Abu Dhabi also ended higher, with the FTSE ADX General Index gaining 1.1 per cent. By comparison, Saudi Arabia's Tadawul fell 2.5 per cent, Qatar declined 3 per cent, and Oman dropped 3.2 per cent, while the MSCI GCC Index slipped 1.6 per cent as investors grappled with concerns over the US-Iran conflict, disruptions to regional trade routes and tighter monetary policy expectations.
"The UAE market demonstrated remarkable resilience at a time when global investors were seeking refuge from geopolitical uncertainty," said Vijay Valecha, Chief Investment Officer at Century Financial. "While many regional markets remained under pressure from lower oil prices and concerns surrounding the Strait of Hormuz, UAE equities continued to attract investors because of the country's diversified economic base and strong domestic growth drivers."
Dubai's gains were driven by consumer-facing sectors, underscoring investor confidence in household spending and economic activity. The Consumer Discretionary Index surged 11.5 per cent during June, while Consumer Staples rose 10.4 per cent, making them the strongest-performing sectors on the exchange. Shares of Talabat gained 11.8 per cent, extending their winning streak to a fourth consecutive month, while supermarket operator Spinneys climbed 13 per cent. Financial stocks also contributed to the rally, gaining 3.1 per cent during the month.
"The standout feature of June was the leadership from consumer-related stocks," Valecha said. "Investors were clearly positioning for continued strength in domestic demand, tourism and population growth. The performance of names such as Talabat and Spinneys suggests that the market is increasingly rewarding businesses leveraged to the UAE's consumption story rather than simply tracking oil-related themes."
Rising investor participation reinforced the positive mood. Trading value on the Dubai Financial Market jumped nearly 53 per cent month-on-month to Dh19.7 billion, while traded volumes rose almost 25 per cent to 5.3 billion shares. Emaar Properties remained the most actively traded stock by value, accounting for Dh7.4 billion in transactions during the month.
Abu Dhabi also posted a solid performance, supported by real estate and telecommunications stocks, which gained 6.3 per cent and 6.2 per cent, respectively. Six of the ADX's 10 sectors ended the month in positive territory, while trading volumes surged more than 31 per cent and traded value increased 19.2 per cent to Dh28.6 billion.
According to Valecha, Abu Dhabi's gains reflected growing confidence in sectors linked to the UAE's long-term economic diversification agenda. "Investors continue to favour companies exposed to infrastructure, property and telecommunications, which benefit from ongoing government investment and population growth," he said. "That has provided important support for the broader market despite external headwinds."
The UAE's resilience came despite a challenging global backdrop. Kamco Invest noted that global equities weakened during June as inflation concerns, hawkish signals from central banks and renewed geopolitical risks pressured major markets, including the US and Asia.
The country's economic fundamentals remained supportive. The UAE's non-oil private sector continued to expand, with the S&P Global UAE Purchasing Managers' Index rising to 52.6, signalling improving business conditions despite regional uncertainty.
Looking ahead, Valecha said the market's ability to outperform its regional peers during a period of heightened uncertainty could position it favourably for the second half of the year.
"Dubai reclaiming the title of the Gulf's best-performing market sends a strong signal to international investors," he said. "If geopolitical tensions continue to ease and liquidity remains robust, UAE equities are well placed to maintain their relative outperformance, particularly given the strength we continue to see in consumer activity, banking and real estate."
Khaleej Times
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