Dubai’s stock market surges to highest in close to a decade
The rally in the Dubai Financial Market comes amid expectations that the U.S. Federal Reserve will cut interest rates this week
A man watches stock movements at the Dubai Financial Market stock exchange. (Photo: Getty Images)
Dubai’s benchmark stock index soared today to its highest in nearly 10 years amid expectations that the U.S. Federal Reserve will cut interest rates this week.
The Dubai Financial Market’s General Index jumped 3.7% in morning trading to reach 5,010, led by Emirates NBD, Dubai’s largest bank, which rose 8%. The Fed’s decisions affect monetary policy in the Gulf, where the UAE dirham and other currencies are pegged to the U.S. dollar.
The stock surge comes as the UAE has embarked on a borrowing binge that promises to extend well into 2025, Bloomberg reports.
Emirati companies and sovereign entities in the UAE issued $38.4 billion of dollar debt this year, a 54% increase from 2023, according to the news agency.
In Abu Dhabi, ADNOC’s new XRG investment firm announced today that it has completed the formation of its joint venture with BP on an international natural gas platform called Arcius Energy. The JV, which will initially operate in Egypt, is 51% owned by BP and 49% by XRG.