UAE Stocks Rise as Central Bank Trims Base Rate

06:40 AM EST, 12/11/2025 (MT Newswires) -- Emirati equities ended Thursday's trading session higher as markets cheered the Central Bank of the United Arab Emirates' decision to reduce its base rate. At the close of trading, the FTSE ADX General Index added 0.250%, while the DFM General Index gained 0.388%. The Central Bank of the UAE cut the base rate for the overnight deposit facility by 25 basis points to 3.65%. The move was in line with the US Federal Reserve's decision on Wednesday to cut the rate on reserve balances by 25 basis points to the 3.50% to 3.75% range, as the Emirati dirham is pegged to the US dollar. Meanwhile, the interest rate applicable to borrowing short-term liquidity was kept at 50 basis points above the base rate for all standing credit facilities. "Investors were bracing for a hawkish rate cut. In the end, there were only two dissenters to the cut and the Fed kept a rate cut in their median forecast for 2026. Equally, it seems that Chair Powell was reluctant to be boxed into the view that the Fed was now on a pause. Instead, there was a firm script that the policy rate was in the broadly conceivable range of neutral, and the Fed stood in a good place to act," ING said. Back home, Reuters reported Thursday, citing Minister of Foreign Affairs Lana Nusseibeh, that discussions between the UAE and the European Union for the trade of goods and services, and investment in renewable energy and critical raw materials, are progressing rapidly. Nusseibeh also mentioned that the fourth round of the discussions will occur this week, while the fifth one is planned at the start of 2026. Over to corporates, shares of Dana Gas (ADX:DANA) gained 2.67%. The Abu Dhabi-listed gas company reported a significant new gas discovery at the North El-Basant 1 exploratory well in the onshore Nile Delta in Egypt. Dubai-listed Emirates Integrated Telecommunications Co (DFM:DU), d/b/a du, agreed to collaborate with China Telecom Global on advanced video services, connected car technology, autonomous network, and voice and roaming services in the UAE. Shares of the telecommunications group closed flat.