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UAE Markets Show Resilience Amid US-China Trade Tensions

Markets in the United Arab Emirates closed higher on April 9, 2025, despite escalating tensions from the ongoing US-China trade war. This resilience was observed even as US President Donald Trump intensified the tariff battle by raising duties on Chinese goods to 104%. The FTSE ADX General Index rose by 0.853%, while the DFM General Index saw a modest increase of 0.052%.

UAE Markets Show Resilience Amid US-China Trade Tensions
Credit: Finimize

In Abu Dhabi, Gulf Medical Projects experienced a notable surge, climbing 11%. Conversely, Abu Dhabi Ship Building faced a decline, falling by 6.07%. In Dubai, stocks such as Dubai Refreshment Co. and Emaar Development made gains, whereas Sukoon Insurance suffered a setback, dropping by 10%. This mixed performance highlights the varying impacts of the global trade situation on individual companies.

The ongoing US-China trade tensions are not just a bilateral issue; they have broader implications for markets worldwide, including those in the Gulf. Although HSBC Global Research has warned that further tariffs could significantly harm global economic growth, the uptick in UAE markets reflects a sense of cautious optimism among investors. It is crucial for investors to monitor how these international economic dynamics affect local markets, especially those stocks that have substantial international dealings.

Overall, despite the risks associated with a potential global slowdown due to trade disputes, the UAE markets have exhibited unusual steadiness. This may signal broader confidence in local economic reforms or diversification strategies, suggesting potential resilience against global disruptions. Understanding these trends could offer insights into how global interconnectedness might create unexpected pockets of stability within the local economy.

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