UAE Stocks End Lower; Central Bank Holds Base Rate Steady

07:47 AM EDT, 10/29/2026 (MT Newswires) -- Stock markets in the United Arab Emirates closed Thursday in the red again as investors dissected the Central Bank's decision to keep its base rate unchanged. At the close of trading, the FTSE ADX General Index lost 1.170%, while the DFM General Index shed 0.466%. The UAE Central Bank on Wednesday held the base rate applicable to the overnight deposit facility steady at 3.9% and the interest rate applicable to borrowing short-term liquidity at 50 basis points above the base rate for all standing credit facilities. The financial supervisory and regulatory authority's decision follows the US Federal Reserve's move to keep the interest rate on reserve balances unchanged due to the Emirati dirham being pegged to the US dollar. "Yesterday's main event was the FOMC decision, which kept the fed funds rate at 3.75-4.00% as widely expected. The decision saw two dissents, with Governor Cook and Cleveland Fed President Hammack voting in favour of a 25bp hike. The Committee upgraded its view on economic activity from 'solid' to 'strong' and noted still elevated inflation, but an on-hold decision was framed as allowing for 'the accumulation of more information,'" Deutsche Bank Research said. "While Warsh continued to eschew forward guidance, his comments reinforced the September SEP signal that saw the vast majority of the FOMC expect another rate hike by year-end. Our economists continue to see the Fed raising rates by 25bps in December and March." Over to corporates, First Abu Dhabi Bank (ADX:FAB) reported higher third-quarter attributable net profit supported by strong growth in net interest income and steady non-funded income. The Abu Dhabi-listed commercial bank closed the session 4.20% lower. Dubai-listed business district developer Tecom Group's (DFM:TECOM) recurring net profit for the quarter rose 12% year over year, driven by sustained revenue growth and prudent financial management. Tecom Group ended the session 0.62% in the green. On the geopolitical front, The Wall Street Journal reported, citing sources, that US Vice President JD Vance sent a letter to Iranian Supreme National Security Council Secretary Mohsen Rezaei to revive peace negotiations. However, US President Donald Trump stated that the contact was made because Iran needed medical supplies.