Dubai, Abu Dhabi stocks' yearly moves to diverge for first time

The fates of the two biggest stock gauges in the United Arab Emirates are set to diverge this year for the first time on record.

Abu Dhabi’s ADX General Index has climbed almost 13% this year, putting it among the world’s best performers. Headed in the opposite direction, Dubai’s main gauge has slumped 20% and is set for its worst annual performance in a decade.

The performance in the UAE capital was boosted mostly by a 40% increase of First Abu Dhabi Bank PJSC. The country’s biggest lender obtained a higher weighting in the benchmark MSCI Emerging Markets Index earlier this month, with estimated passive inflows of around $400m.

In Dubai, real estate stocks slumped, pressuring the index the most, amid growing concern of an oversupply in the residential market.