It's the end of the year, and the UAE stock markets are giving investors a little dance between gains and slips. As Friday's bell rang, the markets in the United Arab Emirates took a tumble, but let's not get too gloomy just yet. The week wasn't a total bust, with stock indices ending on a positive note thanks to a bump in oil prices, even if the trading floors were quieter than usual.

Oil: The Double-Edged Sword

Oil prices, the lifeblood of Gulf equities, kept investors on their toes. The week saw a small rebound, offering a glimmer of hope. But Joseph Dahrieh, the man with his finger on the market's pulse at Tickmill, offered a sobering reminder. He pointed out that the looming specter of a bearish 2026 surplus narrative could rain on the parade, casting a shadow over investor sentiment in the coming months. Still, on Friday, oil prices didn't budge much. Investors were left weighing the odds of supply disruptions, especially with the geopolitical tension simmering after the U.S. decided to flex some military muscle against Islamic State militants in Nigeria and tighten the screws on Venezuela's oil economy.

Abu Dhabi: A Mixed Bag

Over in Abu Dhabi, the index played it cool and closed flat. Gains in sectors like financials couldn't quite tip the balance, as consumer discretionary and energy stocks pulled the other way. Despite this, Abu Dhabi's market managed to climb 0.7 percent for the week, breaking free from a streak of weekly losses. It wasn't all rosy, though. Heavyweights like Alpha Dhabi Holding and Abu Dhabi Commercial Bank saw declines of 0.5 percent and 1.5 percent, respectively. Yet, there were winners too. Presight AI Holding saw its stock climb 1.2 percent, and First Abu Dhabi Bank, the nation's biggest lender, saw a modest uptick of 0.5 percent.

Dubai: Holding the Line

Dubai's market mirrored Abu Dhabi's turbulence. The benchmark index slipped 0.1 percent, dragged down by financial and consumer discretionary sectors. But don't write off Dubai just yet. The city managed to snag its fifth consecutive weekly gain. Dubai Islamic Bank dipped 0.8 percent, while budget airline Air Arabia took a hit, dropping 1.7 percent. The dance continues as investors keep an eye on the horizon, ready for whatever comes next.