UAE Stocks Close Higher Amid Soft Non-oil Private Sector Growth

06:50 AM EST, 01/06/2026 (MT Newswires) -- Emirati equities ended Tuesday's trading session in the green despite slower growth in the country's non-oil private sector weighing on investor sentiment. At the close of trading, the FTSE ADX General Index gained 0.527%, while the DFM General added 0.851%. The indicator of the country's non-oil private sector activity, the S&P Global UAE Purchasing Managers' Index, stood at 54.2 in December 2025, down from 54.8 in November 2025. The input costs increased at their sharpest rate in 15 months, prompting companies to take a more cautious approach towards employment and adopt lean inventory strategies. "The UAE non-oil sector concluded 2025 with a solid upturn, marking a year of robust but somewhat tempered growth in business conditions. The PMI averaged 54.0 over the year, which was close to its long-run average, but still signalled the weakest annual performance since 2021," S&P Global Market Intelligence senior economist David Owen said. On the macroeconomic front, markets are anticipating that the US Federal Reserve will again cut rates in 2026 with analysts at Berenberg stating that "We expect the Fed to deliver only one rate cut this year: a 25bp reduction in June 2026 (taking the funds rate to the 3.25-3.50% target range), reflecting a change in Fed leadership and political pressure from Trump. After that, further cuts appear unlikely, as Fed officials will struggle to shift policy into accommodative terrain while inflation remains well above target." Back home and on the corporate front, shares of ADNH Catering (ADX:ADNHC) ended 0.53% lower. The Abu Dhabi-listed catering company entered into a liquidity provision agreement with Arqaam Capital. Meanwhile, in Dubai, Deyaar Development (DFM:DEYAAR) gained 1.94% as the real estate company broke ground on its DWTN Residences project, comprising 522 residential units.