The UAE markets held steady this week as MSCI’s May 2025 rebalancing took effect, ushering in new index entrants and driving focused volumes across select names. DFM and ADX saw little index-level movement, but underlying flows were shaped by passive fund positioning, real estate consolidation, and robust dealmaking. Globally, AI strength and NVIDIA’s earnings lifted sentiment midweek, while lingering tariff risk and auto-sector selloffs capped broader upside.

 

Key Highlights

• MSCI’s latest review added ADNOC Gas, DEWA, and Salik to the MSCI Emerging Markets Standard Index, with estimated inflows of $463M, $367M, and $236M respectively, effective May 30
• Emaar Development acquired AED 2.9B worth of land in Ras Al Khor from Amlak, bolstering its land bank and reinforcing confidence in Dubai’s high-end real estate cycle
• ADNOC Drilling won a $1.15B contract for two jack-up rigs over 15 years, reflecting sustained energy services demand in the offshore segment
• LuLu Retail confirmed for inclusion in the FTSE Global Equity Index Series, drawing fresh institutional visibility ahead of the next rebalance window
• NVIDIA’s record quarter and AI-forward guidance sparked a 2% rally in S&P500 futures, reigniting global tech enthusiasm and overshadowing geopolitical noise

 

DFM Wrap-Up

The DFM General Index inched up 0.06% to close the week at 5467.31. Real estate momentum continued to anchor sentiment, led by Emaar, which closed flat at AED 13.55. Emaar Development also remained steady at AED 13.40, but grabbed headlines with its AED 2.9B Ras Al Khor land acquisition. Salik, newly added to the MSCI EM Index, fell 2.44% to AED 5.59 as passive flows recalibrated. DEWA rose 1.49% to AED 2.73, also joining the MSCI index this week with estimated inflows of $366.6M, or 38.4x its average daily volume. Emirates NBD rose marginally to AED 23.05, while DIB ended flat at AED 7.99. Talabat dropped 2.04% to AED 1.44, as traders took profit following its recent momentum.

 

ADX Check-In

The ADX edged up 0.02% to end at 9667.26, powered by index activity and capital market tailwinds. ADNOC Gas climbed 0.3% to AED 3.23 after being added to the MSCI EM Index, drawing an estimated $463M in passive flows—around 6x its daily average. First Abu Dhabi Bank rose 0.5% to AED 16.10, while IHC gained to AED 402.80. Multiply fell slightly to AED 2.14 and Aldar ticked down to AED 8.36, despite strong residential sales. Deutsche Bank expanded its UAE presence with an ADGM license, and Mubadala raised $1B via a 10-year sukuk—both bolstering Abu Dhabi’s investment narrative.

 

MSCI Updates

MSCI’s May 2025 Quarterly Comprehensive Index Review added ADNOC Gas, DEWA, and Salik to the MSCI Emerging Markets Standard Index, with the UAE’s index weight rising 0.14% to 1.56%. Estimated passive inflows reached $463M for ADNOC Gas, $367M for DEWA, and $236M for Salik—each well above their average daily volumes. These changes took effect at market close on May 30, adding structural support to UAE equities and reinforcing the market’s rising importance in the EM landscape.

 

Global Market Highlights

AI continued to dominate global headlines as NVIDIA crushed earnings estimates and raised forward guidance, sending S&P 500 futures soaring by 2% midweek. The tech rally helped offset jitters stemming from Trump’s shifting tariff stance, as he delayed a proposed 50% EU tariff while reiterating his focus on bilateral deals. Meanwhile, Boeing locked in a new aircraft order with Qatar, though aviation sentiment remained mixed due to valuation concerns on regional IPOs.

Oil prices remained stable despite fresh geopolitical flashpoints. China accused Washington of violating trade agreements, even as Beijing reported better-than-expected April industrial profits at +3% YoY. In Europe, Germany and France pushed for expedited trade discussions with the US, while the UK withdrew from broader talks amid political backlash. Global markets oscillated through the week with Japan and South Korea seeing volatility, and GCC financial markets reaching a record $4.2 trillion in combined capitalization.