Abu Dhabi, Dubai Stocks End Week Downbeat as Oil Prices Fall on Oversupply Concerns

06:59 AM EST, 12/12/2025 (MT Newswires) -- Trading in the United Arab Emirates ended the week in negative territory as oversupply concerns and geopolitical developments weighed on oil prices. At the close of Friday trading, the FTSE ADX General Index shed 0.173%, while the DFM General Index lost 0.042%. In its Oil Market Report for December, the International Energy Agency reiterated its warning of a global oil surplus, albeit its forecast narrowed from a month ago due to lower OPEC+ output. As such, oil prices came under pressure on Friday as Brent crude futures fell 0.32% to $61.082 per barrel at 3:27 pm UAE time. "The shift of interest from the oil market has been predicated on the continued ongoing extremes between the geopolitical backdrop and fundamentals. The universal call for market surplus was both met with more contested views, as well as more willingness to deploy risk during periods of volatility," RBC Capital Markets said. "At the same time, nearly all of our conversations have featured some form of supply impact, with none believing that the current market conditions can last. Whether supply is disrupted, cut through policy, or pressured by price, there are few in the market that believe that the current backdrop can remain the status quo into 2026." Back home, leaders from the UAE and Gabon met and discussed ways to boost economic collaboration, trade, and investment, alongside a potential private sector partnership. On the corporate side, stocks of Eshraq Investments (ADX:ESHRAQ) closed 4.17% higher. The investment company agreed to sell a land plot in Abu Dhabi to A9 Downtown Holding for 300 million Emirati dirhams and plans to use the sale proceeds for the growth of its investment portfolio. Over in Dubai, Union Properties (DFM:UPP) broke ground on its 2 billion-dirham Mirdad community development in Dubai Motor City. Shares of the real estate developer were 2.12% in the red at closing.