After Reuters reported that the United States, Saudi Arabia, India, and other countries are talking about a potential rail and port deal, stock markets in the United Arab Emirates increased on Friday.
UAE shares jump on possible rail: According to U.S. sources informed of the discussions, the infrastructure project negotiations, which have also involved the United Arab Emirates (UAE), may reorganise trade between the Gulf and South Asia, uniting Middle Eastern nations via trains and connecting to India by port.
The benchmark index in Abu Dhabi ended the day 0.3% higher thanks to increases in the banking and real estate sectors, notably National Marine Dredging Company’s 3.9% rise and Aldar Properties’ 0.6% gain.
First Abu Dhabi Bank, the biggest lender in the UAE, increased 1.1%.
Hani Abuagla, Senior Market Analyst at XTB MENA, said that the Abu Dhabi market might recover after a month of price corrections provided investors continue to purchase the dips and oil prices rise.
As investors evaluated concerns about the state of China’s economy against production curbs from major producers Saudi Arabia and Russia, oil prices, a key driver of the Gulf’s financial sector, recovered from the previous session’s decline.
However, By 1136 GMT, Brent crude futures had increased 0.71%, or 64 cents, to $90.56 per barrel.
Further, Dubai’s primary index ended 0.02 points higher thanks to gains of 0.9% in the leading lender Emirates NBD Bank and 1.2% in the publicly traded Dubai Electricity And Water Authority.
Additionally, Mashreqbank, an Islamic lender, saw a 3% increase in its stock price.
However, According to LSEG data, the Abu Dhabi and Dubai indexes experienced weekly losses of 1% and 0.55%, respectively.
ABU DHABI up 0.3% to 9,691
DUBAI up 0.2% to 4,067