By Mohd Edrees

Sept 26 (Reuters) - Stock markets in the United Arab

Emirates rebounded on Friday, with Dubai leading the recovery,

driven by an increase in consumer staple and financial sector

stocks.

Dubai's main index closed 0.7%, reversing three

consecutive days of declines, lifted by a 2.5% jump in Dubai

Islamic Bank and a 6.8% surge in grocery supermarkets

operator Spinney 1961 Holding.

The Dubai stock index may face further declines, but its

strong fundamentals and the upcoming ALEC IPO could offer

support down the line, according to Joseph Dahrieh, Managing

Principal at Tickmill.

Abu Dhabi's benchmark index broke a three-session

losing streak with a 0.5% rise, lifted by gains in energy and

banking stocks.

Adnoc Gas surged 4.1% after its parent firm

XRG completed the acquisition of an 11.7% stake in phase 1

(trains 1-3) of the Rio Grande LNG, marking its first U.S. gas

investment.

The UAE's biggest lender First Abu Dhabi Bank

gained 1%, while energy logistics firm Adnoc L&S

rose by 1.2%.

AI-driven space tech firm Space42 also jumped

2.7% after signing a long-term deal with Dynamic Map, the

U.S.-based subsidiary of Japan's Dynamic Map Platform,

to provide HD map data to General Motors' Super Cruise in the

UAE.

Separately, Abu Dhabi sold $3 billion in a two-tranche bond

on Thursday, attracting strong demand for the sale, fixed income

news service IFR reported.

Despite Friday's rebound, Dubai index logged a 2.8% weekly

loss, its steepest decline in over three months, while Abu Dhabi

ended the week with a 1.3% decrease, according to LSEG data.

ABU DHABI rose 0.5% to 9,999.8

DUBAI up 0.7% to 5,855