Abu Dhabi National Oil Company has issued its fourth tender this month, trade sources said on Friday, a move that could gauge whether buyers are willing to load crude in the Strait of Hormuz following an interim peace deal between the U.S. and Iran.
The iShares UAE ETF earns a "Hold" rating due to mixed technicals and sector concentration in Financials and Real Estate, not Energy. UAE trades at a low P/E under 10x with a 16% long-term EPS growth rate, but lacks momentum and growth exposure. The ETF offers a high 4.32% dividend yield, driven by heavy bank and real estate allocations, but carries elevated risk from economic sensitivity and geopolitics.
Marine fuel sales at the United Arab Emirates' Fujairah port extended declines in May to hit a record low, latest data showed, as cargo replenishment stayed constrained after the Middle East war crimped shipments out of the Strait of Hormuz.
On May 1, the United Arab Emirates (UAE) formally exited both the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ grouping of major oil producers. Such exits are not unheard of.
Though the Middle Eastern nation did not give a reason for its exit, some of its oil infrastructure was recently damaged by drone strikes from fellow OPEC member Iran.
The iShares MSCI UAE ETF (UAE) remains a buy, supported by robust macro fundamentals, cheap valuations, and strong momentum. UAE's GDP growth prospects are set to improve even further in 2026, and are underpinned by strength from the non-oil sector, with the financial sector too seeing alluring opportunities. Despite price appreciation in recent months, UAE's dividend yield has risen to 3.57%, with top holdings maintaining attractive payout and dividend growth profiles.
iShares MSCI UAE ETF offers some exposure to the UAE's impressive economy, one of the most rapidly growing of the past half century. Unfortunately, the ETF's historical performance has been underwhelming compared to the U.S. market, and other single country funds. Its selection of equities represents a poor proxy for the broader Emirati economy, raising concerns about its effectiveness and future prospects.