MENA Utilities: 2Q26; strong Q1, more of the same in Q2?

Research evidence excerpt

MENA Utilities: 2Q26; strong Q1, more of the same in Q2?

Global Research

21 July 2026ab

MENA Utilities Equities

Arab Emirates2Q26; strong Q1, more of the same in Q2?

Utilities

Alexander Estefanous, CFA

MENA utilities: limited insight, will we see another strong quarter? Analyst

MENA utilities delivered a relatively uneventful quarter from a share price perspective, alex.estefanous@ubs.com

with sector performance broadly in line with global peers over the last three months and +44-20-7567 0508

prices largely flat. DEWA and SEC both traded sideways, reflecting supportive long-term Mark Freshney

fundamentals but limited new macro catalysts. Operationally, the quarter saw milder Analyst

weather across key markets. In Dubai, temperature departures stayed below long-term mark.freshney@ubs.com

averages throughout 2Q26, with April at -0.35°C versus a 10-year average of +1.1°C, +44-20-7568 3989

and May and June showing similar trends. While temperature departures are not a direct

proxy for air-conditioning demand, they indicate cooling intensity and point to a less

supportive weather backdrop than usual. Beyond weather, activity indicators were

mixed but generally constructive. Mobility trends remained healthy, suggesting resilient

economic activity, while residential property transactions moderated as higher supply

and a more cautious investment environment weighed on demand. In Saudi Arabia,

weather patterns were mixed across cities, noting temperature departure similarities

with Dubai. While weather can affect quarterly consumption, we continue to view RAB

growth as the key driver of sector revenue and earnings expansion.

Saudi Energy; business as usual… estimates lifted modestly (+2% to SAR 17.4)