It is one thing to argue that the Emirates is resilient; it is another to see it in the half-year results. Across the banks, developers, and infrastructure names we follow, the first half of 2026 delivered steady earnings, controlled risk, and dependable dividends against a backdrop that was anything but calm.
Banks: quality held
UAE lenders carried strong returns on equity into a stressed period, supported by low-cost deposit funding and conservative provisioning built up over prior years. Cost of risk stayed contained. Balance sheets that were fortified in calmer times did exactly what they were meant to do when tested.
Developers: backlog and discipline
The leading developers continued to convert healthy pre-sales into recurring income while holding disciplined balance sheets. Rather than retrench, the strongest operators kept launching — a choice only well-capitalized businesses can make, and one that widens the gap between them and weaker peers.
The best businesses do not need calm conditions to perform. They need good balance sheets — and the Emirates' leaders have them.
What we took away
Nothing in the first half changed our thesis; it reinforced it. We used episodes of headline-driven weakness to add to businesses whose fundamentals never wavered. Boring earnings, in a season that was anything but boring, are exactly what a long-term owner wants to see.
This note is the opinion of Lucki Capital Asset Management as at the date of publication and is provided for informational purposes only. It does not constitute investment advice, research, or a recommendation, offer, or solicitation to buy or sell any security. Views may change without notice. Past performance is not indicative of future results.