UAE stocks ended Monday higher as investors prepared for the US Federal Reserve’s upcoming interest rate decision. Markets in Abu Dhabi and Dubai gained as traders watched global economic signals and new developments in the Middle East.
The FTSE ADX General Index in Abu Dhabi increased by 0.173% at the close of trading. The Dubai Financial Market General Index also moved higher, rising by 0.987%.
Investor focus is now on the US Federal Reserve meeting scheduled for Wednesday. Market participants expect the central bank to keep interest rates unchanged due to continued inflation concerns, changing oil prices, and global risks.
The Federal Reserve’s decision could affect markets worldwide, including the Gulf region. Higher or lower interest rates in the United States often influence investor activity, currency movements, and business confidence.
Analysts said the Fed faces a difficult decision as it balances inflation control with economic growth concerns. Some market experts expect the central bank to maintain its current policy, while others believe rising oil prices could influence future rate decisions.
The latest market movement also comes as investors monitor developments in the Middle East. A temporary reduction in direct attacks between the United States and Iran has increased hopes for possible diplomatic discussions.
However, regional concerns remain after Iran-backed Houthi forces carried out attacks on two energy facilities in Saudi Arabia. The incidents followed Saudi air strikes against military positions in Yemen.
Despite these risks, UAE investors showed positive sentiment during Monday’s trading session. Strong corporate updates and expectations around economic stability supported market confidence.
In Abu Dhabi, FAB Securities maintained its positive view of the National Bank of Ras Al-Khaimah, also known as Rakbank. The financial firm kept its accumulate rating and set a target price of 10 Emirati dirhams per share.
The recommendation was based on Rakbank’s strong profitability growth during the second quarter. The bank reported improved performance supported by higher income from lending activities and other financial services.
Rakbank shares closed 0.66% higher on Monday, showing continued investor interest in the banking sector.
In Dubai, Emirates Islamic Bank completed a new digital banking connection with Taaleem Holdings. The integration links the bank’s platform with Taaleem’s enterprise resource planning system to improve payment operations.
The new system is expected to make financial processes smoother and more efficient for Taaleem. The company’s shares ended the session 0.63% higher.
The UAE market gains came during an important week for global investors. The Federal Reserve’s interest rate decision remains the key event that could influence market direction in the coming days.
Investors are also expected to continue tracking oil prices, regional security developments, and company earnings reports for further market signals.
The positive start to the week shows continued confidence in UAE financial markets despite global uncertainty. Abu Dhabi and Dubai exchanges remain supported by strong local companies and investor attention toward future economic growth.
