UAE Stocks Snap Losing Streak as Non-oil Private Sector Growth Expands
Stocks in the United Arab Emirates broke a three-day losing streak as investors cheered the latest economic data, which signaled solid growth in the country's non-oil private sector.At the close of Thursday trading, the FTSE ADX General Index gained 0.212%, while the DFM General Index was up 0.491%.The S&P Global UAE PMI, an indicator of the country's non-oil private sector activity, rose to 55.3 in August from July's 52.7, marking the fastest improvement in non-oil private sector business conditions since December 2024. New business and output levels grew at a higher rate, while cost pressures softened as supply conditions improved."UAE businesses are actively building supply chain resilience through localisation, with surveyed firms increasingly switching to domestic suppliers to help circumvent geopolitical disruptions. This strategy contributed to a further reduction in delivery times and strong purchasing growth," S&P Global Market Intelligence principal economist David Owen said. "In addition, firms accumulated inventories at the sharpest pace in nearly three years, pointing to growing confidence in the demand outlook and efforts to limit the impact of potential future supply shocks. At the same time, however, employment decreased, reflecting a degree of hesitancy to commit to long-term capacity expansion."Turning to corporate news, Space42 (ADX:SPACE42) launched its Future Spacers program to develop professional skills among local students in line with its National Space Strategy 2031. Shares of the space technology company closed the session 6.67% higher.Sukoon Takaful (DFM:SUKOONTAKAFL) and Ajman Bank (DFM:AJMANBANK) will team up to deliver Sharia-compliant Takaful services to the latter's customers. Sukoon Takaful ended flat, while Ajman Bank added 0.71% at closing.On the geopolitical front, US President Donald Trump said in a social media post that he would not force Iran into negotiations and "couldn't care less" if the Middle Eastern country signs an agreement. Trump also stated that he prefers the US position with almost total control of the Strait of Hormuz.
