UAE Equity Research - Banking Sector 1Q26 - Preview Note

UAE banks remain fundamentally well positioned heading into 1Q26. However, rising geopolitical uncertainties introduce near-term risks, particularly around deposit stability and asset quality in select cyclical sectors.

The index peaked around ~2085, and witnessed fast sell-off amid regional geopolitical developments near the peak area down into the 1865 support level. Price has broken below all key moving averages, the 20-DMA has rolled over and crossed beneath the medium MA.

GCC debt capital market (DCM) conditions have weakened amid escalating Iran-related geopolitical tensions, with spreads widening to five-year highs and issuance activity moderating amid heightened volatility.

Alpha Dhabi Holding: The stock is showing signs of a potential rebound from the key support level at AED 6.75. A decisive break above the immediate resistance at AED 7.70 is likely to attract strong buying interest, which could drive the price higher toward the next resistance levels at AED 8.57, followed by AED 9.00, over the short to medium term.

Annual Dividends 2025 for UAE Markets (Updated)