Dubai reclaims spot as best-performing GCC stock market, surges 3.4% in June

The UAE's stock markets emerged as a rare bright spot in the Gulf during June, delivering gains even as geopolitical tensions, falling oil prices and global market volatility weighed on investor sentiment across most regional and international bourses.

- Somshankar Bandyopadhyay

According to a report by Kamco Invest, Dubai led the advance, with the DFM General Index rising 3.4 per cent during the month, making it the best-performing market in the GCC. Abu Dhabi also ended higher, with the FTSE ADX General Index gaining 1.1 per cent. By comparison, Saudi Arabia’s Tadawul fell 2.5 per cent, Qatar declined 3 per cent, and Oman dropped 3.2 per cent, while the MSCI GCC Index slipped 1.6 per cent as investors grappled with concerns over the US-Iran conflict, disruptions to regional trade routes and tighter monetary policy expectations.

“The UAE market demonstrated remarkable resilience at a time when global investors were seeking refuge from geopolitical uncertainty,” said Vijay Valecha, Chief Investment Officer at Century Financial. “While many regional markets remained under pressure from lower oil prices and concerns surrounding the Strait of Hormuz, UAE equities continued to attract investors because of the country’s diversified economic base and strong domestic growth drivers.”