Dubai Financial Market (DFM) continued to rally in July, buoyed by strong performance from banking and real estate stocks, according to Kamco Invest’s GCC markets July report (pdf). Its benchmark index notched the strongest monthly performance in the region (+7.9%) with a 19.4% gain YTD, supported by double-digit gains in heavyweight financial stocks.

Ekttitab Holding Company made the biggest gains in July, posting a 43.2% increase in its share price, followed by United Foods (+21.5%) and Commercial Bank of Dubai (+20.1%). Financials topped the list of gainers with a 12.1% surge, followed by real estate at 11.7%.

IN CONTEXT- Dubai’s property market showed no signs of slowing in 1H 2025, with AED 326.6 bn in sales in 1H, up 40% y-o-y. While prices are widely expected to moderate this year as new supply hits the market, demand has yet to subside as population growth continues.

The index fell 0.63% last week, snapping a five-week winning streak, Sarah Alyasiri, financial market strategist at CFI Financial Group, told EnterpriseAM UAE. Still, it’s at its highest level in almost 20 years — underscoring the market’s resilience despite growing concerns over US tariffs and slowing global growth, she said.

The ADX also had a good month: The FTSE ADX General Index rose 4.1% m-o-m, its fourth straight monthly gain, bringing its YTD gain to 10.1%. Bank of Sharjah broke the charts with a 75.5% increase in its share price, followed by Commercial Bank International (47.6%) and E7 (37.5%).

The healthcare sector led gains with an 11% jump, supported by PureHealth’s 11.9% share price increase. Real estate stocks also surged (+7%), buoyed by Al Khaleej Investment’s 20.2% rise. The utilities Index recorded the sharpest decline among all sectors, falling 4.6% last month.

Zooming out: Gulf markets mostly extended their summer rally in July, buoyed by 2Q earnings optimism and a risk-on tone across global equities. The MSCI GCC Index gained 2.2% during the month, marking a second consecutive month of gains, with six of the seven GCC bourses closing in the green. The GCC index was up by 3.7% YTD.

Saudi Arabia bucked the trend: Saudi Arabia’s TadawulAll Share Index retreated 2.2% in July, weighed down by a broad selloff across sectors. Boursa Kuwait extended its rally to a third month, though July’s gains were driven primarily by mid- and small-cap names. Qatar’s QE 20 Index gained 4.8% in July, with banks and consumer stocks in the driver’s seat. The Muscat Stock Exchange’s MSX 30 Index gained 6.2% m-o-m, while the Bahrain All Share Index inched up 0.6%.

Elsewhere in the region, Egypt’s EGXgained 4.1% last month with non-bank financial services shares being the most-traded equities by value in July (excluding block trades).

Looking ahead: While July’s rally reflects optimism around corporate earnings, the divergence between diversified economies like the UAE and Qatar and oil-exporting heavyweights like Saudi Arabia could continue to shape market sentiment in the near term. Investors will also be watching oil price movements, project execution momentum, and the trajectory of US interest rates.

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