Dubai and Abu Dhabi Markets Rise on Rate Cut and Strong Growth Outlook

The UAE stock markets closed higher today following the UAE Central Bank’s decision to cut interest rates by 25 basis points, in line with the U.S. Federal Reserve. The move boosted investor confidence and reinforced expectations of stronger economic growth ahead.

Dubai Financial Market PerformanceThe Dubai benchmark index gained around 0.7%.

• Emaar Development surged 4.9%.

• Gulf Navigation Holding climbed 6.8%.

• Emaar Properties rose 1.1% after announcing it would not proceed with selling its stake in its Indian unit, while also signaling potential new partnerships with major Indian companies.

Abu Dhabi Securities Exchange Performance

The Abu Dhabi main index advanced about 0.3%.

• Adnoc Gas added 1.5%.

• Emirates Telecommunications Group (e&) gained nearly 3%.

UAE Economic Outlook

The UAE Central Bank revised its economic growth forecast upwards, projecting the economy to expand by 4.9% in 2025, compared to an earlier estimate of 4.4%. The upgrade reflects stronger oil output alongside robust performance in non-oil sectors, underscoring the UAE’s position as a leading investment hub in the region.