Report Summary

Global tensions from possible negotiations with Iran have eased somewhat, but lingering geopolitical risks remain. Europe’s stance on Greenland could reignite friction with the United States. In the U.S., bank earnings show tighter margins, with AI still supporting broader market sentiment. Meanwhile, Tesla faces setbacks in India after slower-than-expected sales. Locally, Dubai names DEWA, PARKIN, SALIK, and Taxi Dubai are in focus, though caution is advised at higher levels. A luxury-focused ETF is launching soon in Abu Dhabi, appealing to consumer demand from China. Today’s top picks are DEWA, PARKIN, and Dubai Taxi (DTC).

UAE Markets

Navigating 2026: Dubai’s Infrastructure - 2026 Price Targets and Outlook

DEWA (Dubai Electricity & Water Authority): This is seen as a solid "marathon" stock for the long term. Currently, it is trying to push past the 3.00 level; if it manages to stay above that, it has a clear path toward a 2026 target of 4.00. However, keep an eye on the overall market, as a sudden dip in global sentiment could temporarily slow it down.
PARKIN (Parkin Company): After a massive climb from its starting price, Parkin is showing strong momentum. The "magic number" to watch is 6.70—if the stock climbs over this hurdle, experts see it reaching a 2026 target of 7.50.
SALIK (Salik Company): Salik has been on a winning streak, but because the price has gone up so much, some are worried it’s becoming expensive. While it could reach a 2026 target of 7.50–8.00, it needs to either break its previous record highs or take a "breather" (a small price drop) to give new investors a safer entry point.
DUBAI TAXI (DTC): This stock is currently "stuck" in a tight range, repeatedly hitting its head against the 2.82 ceiling. If it finally breaks through that level with enough trading activity, it could cruise toward a 2026 target of 3.25–3.40, though investors should note that it sometimes trades in lower volumes.
Strategic Summary: All four companies represent "essential" Dubai infrastructure. For 2026, the focus is on whether these stocks can turn their current "resistance" levels (price ceilings) into "support" levels (price floors) to reach these higher year-end targets.

Global Markets

Mixed Major Indexes: The broader market stayed relatively flat, with the S&P 500 edging up just 0.1%. Investors were caught between optimism over lower-than-expected producer prices (PPI) and nervousness surrounding the start of the corporate earnings season.
Wells Fargo’s Significant Miss: Wells Fargo was the day's biggest banking laggard, with its stock sliding 4.6%. The bank missed expectations for both profit and revenue, primarily due to a surprise $612 million expense for employee severance and weaker-than-forecasted interest income.
Citigroup’s Revenue Struggle: Citigroup reported a "messy" quarter; while they technically beat profit estimates, they missed their revenue target. Investors reacted poorly to the slow pace of the bank's massive internal reorganization, sending the stock down over 3%.
Tech Sector Slump: Beyond banking, the Nasdaq was dragged down by a 1.1% drop in Nvidia and losses across other "Big Tech" names. A lowering of the sales forecast from pharmaceutical giant Eli Lilly (which fell nearly 7%) also weighed heavily on market sentiment.

News

International Holding Company (IHC) and the U.S. International Development Finance Corporation (DFC) have entered a landmark strategic agreement to mobilize global capital for high-impact investments across critical sectors including energy, healthcare, food security, and technology.
The World Bank forecasts strong economic growth for the UAE, projecting a 5% expansion in 2026 and 5.1% in 2027, outperforming the broader GCC region's expected growth of 4.4% and 4.6% respectively.
Boreas S&P Absolute Luxury ETF (Ticker: LUXURY): This fund begins its subscription period today, January 15, 2026, on the ADX. It offers a "one-click" way to invest in elite global brands like Ferrari, Hermès, and LVMH using local Dirhams. With a low 0.49% fee, it allows UAE investors to profit from the high spending power of the global wealthy through 32 of the world's most prestigious luxury companies.

Investment Recommendations

Aldar Properties (ALDAR): Buy at 8.90, Target 9.20, Stoploss below 8.80.
Dana Gas (DANA): Buy at 0.88, Target at 0.91, Stoploss below 0.87.