The Abu Dhabi index closed higher on Friday, after shareholders of satellite solutions provider Al Yah Satellite Communications and Bayanat Ai approved the merger to Create SPACE42, a global AI-powered space technology firm.

The merger was initially proposed by the respective Boards of Directors on Dec. 18, and is expected to become effective by mid-2024.

Abu Dhabi's benchmark index edged 0.009% up, supported by a 2.1% jump in each of Yahsat and Bayanat Ai shares.

While gains in the index were stemmed by a last minute decline in IHC-owned stocks with Abu Dhabi's biggest developer Aldar Properties losing 0.6% and Alpha Dhabi Holding dipping 0.3%.

The Abu Dhabi stock market stabilized to a certain extent, buoyed by the gains in banking sector, said George Pavel, General Manager at Capex.com Middle East, who added "rebounding oil prices could help local stocks rebound"

However, its weekly performance was negative and could remain exposed to downside risks as a results of geopolitical tensions, Pavel added. Oil prices - a key catalyst for Gulf's financial markets - gained on Friday after a top U.S. official expressed optimism over economic growth and as supply concerns lingered due to conflicts in the Middle East.

Brent crude was up 0.64%, or $0.57, to $89.59 a barrel by 1133 GMT.

Meanwhile, Dubai's main index declined 0.5%, hitting 3-month lower, weighed down by a 2.6% decrease in toll gate operator Salik Company and 5.6% in drop in Dubai Investments.

However, Dubai's biggest lender Emirates NBD Bank extended gains on Friday with a 1.2% hike after the lender reported a 12% jump in first-quarter net profit to 6.7 billion dirham ($1.82 billion) on Thursday.

Abu Dhabi and Dubai indexes recorded 0.9% and 0.6% weekly losses, respectively, according to LSEG data.

ABU DHABI up 0.009% to 9,042

DUBAI down 0.5% to 4,148

($1 = 3.6729 UAE dirham)

(Reporting by Mohd Edrees in Bengaluru; Editing by Krishna Chandra Eluri)