Emirati Equities in Green; IMF Projects UAE Economic Growth to Contract in 2026

MT Newswires · 2d ago
07:39 AM EDT, 10/13/2026 (MT Newswires) -- United Arab Emirates' two benchmark indices closed in the green on Tuesday as the FTSE ADX General Index added 0.325% and the DFM General Index gained 0.361%. The International Monetary Fund reduced its 2026 economic growth forecast for the UAE due to regional conflict and supply disruptions amid the prolonged closure of the Strait of Hormuz, with the country's gross domestic product now expected to contract by 3.9%. However, the fund projects the Emirati economy to rebound in 2027 after the expected contraction, with GDP expected to rise 7.7% as the Hormuz waterway reopens. Meanwhile, inflation is forecasted at 4.5% and 2.5% in 2026 and 2027, respectively. "Geopolitics has its latest and most acute manifestation in the war in the Middle East, while hostilities in other regions and tensions in international trade relations continue to cast a shadow on economic activity. The negative supply shock from the war is working its way through the economy through higher and more volatile energy prices and their impact on inflation dynamics," according to the World Economic Outlook update published Tuesday. Over to corporates, Abu Dhabi National Investment and Development (ADX:ADID), or Adid, inked a debt settlement agreement with First Abu Dhabi Bank (ADX:FAB). Adid lost 1.75% at closing, while First Abu Dhabi Bank ended the session 1.84% in the green. Dubai-listed lender Emirates NBD (DFM:EMIRATESNBD) unit Emirates NBD Egypt expanded its wealth management offering by adding two EFG Hermes managed equity funds under a distribution deal. Emirates NBD shares closed 1.32% higher. On the geopolitical front, US President Donald Trump stated in a post on his social media platform Truth Social that he does not believe that China and Russia are assisting Iran, adding that they have "too much to lose" and that the US would know any such support "very fast."