Abu Dhabi index closed lower on Friday, slipping off its record highs in line with oil prices as weak corporate earning sapped investors' appetite, while the Dubai index bucked the trend.

Crude prices, a key catalyst for the Gulf's financial markets, fell more than $1 to $98.26 on Friday as Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day (bpd).

The Abu Dhabi index closed 0.6% lower, snapping its 5-day gaining streak as conglomerate International Holding Company dropped 1.4% and Emirate's largest lender First Abu Dhabi Bank decreased 0.8%. Among other stocks, Julphar declined 3.7% after the Gulf pharma firm's second-quarter net profit dropped over 90% to 4.8 million dirham ($1.31 million). Abu Dhabi index recorded a weekly gain of 3.3%, according to Refinitiv data.

Dubai's main share index rose 0.3%, supported by a 0.7% gain in Sharia-compliant lender Dubai Islamic Bank , while low cost carrier Air Arabia jumped 2.3%, a day after its second-quarter net profit soared 16-fold to 160 million dirham ($43.56 million) from a year ago.

However, Dubai's blue-chip developer Emaar Properties slipped 1.6% as the firm reached a deal with Dubai Holding to buy its stake in their Dubai Creek Harbour joint venture for 7.5 billion dirhams ($2.04 billion).

The Dubai stock market was volatile after the publication of mixed earnings results. The market could however see additional increases after some price corrections, said Daniel Takieddine, CEO MENA BDSwiss. 

(Reporting by Mohd Edrees in Bengaluru; Editing by Shailesh Kuber)