June 12 (Reuters) - The UAE stock markets posted gains on Friday, supported by banking and real estate stocks, amid growing hopes in the Middle East for an imminent ceasefire agreement in the region.

A Western source told Reuters today that the United States and Iran could sign a memorandum of understanding to end the war as soon as possible, possibly on Sunday, and most likely in Geneva.

Dubai’s main index recorded its best performance in more than two months, rising 3.8 percent as many of its sectors posted gains.

The leading real estate developer Emaar Properties saw its shares rise 8.3 percent, while shares of Emirates NBD, the emirate's largest bank, closed up 8 percent.

Emaar announced plans on Thursday to create an urban area in Dubai costing around $55 billion, betting on the emirate’s real estate market’s ability to absorb the shock of regional conflict and maintain foreign demand that drove transactions to unprecedented levels in 2025.

Hani Abu Akleh, a market analyst at XTB MENA, said that UAE stocks rose sharply on this back, as investors readjusted their positions towards a return to normalcy scenario after weeks of repeated escalation and de-escalation bouts that led to volatility.

He added, "The outlook for the energy sector may also improve, as the reopening of the Strait of Hormuz would restore export flows and operating conditions to normal."

The Abu Dhabi benchmark index rose 2.7 percent, boosted by a 6.9 percent increase in shares of First Abu Dhabi Bank, the UAE's largest lender, and a 7.5 percent rise in shares of Aldar Properties.

Abu Dhabi Ports shares rose 8 percent after its Black Caspian unit made an enhanced mandatory tender offer to acquire a majority stake in Egyptian-listed Alexandria Container and Cargo Handling Company, raising the offer price to 27.47 Egyptian pounds per share ($0.5290).

Oil prices, a key driver for financial markets in the Gulf, fell 3.4 percent to $87.29 a barrel by 11:44 GMT.

On a weekly basis, data compiled by the London Stock Exchanges Group indicates that the Dubai index advanced 3.2 percent and the Abu Dhabi index advanced 2 percent.

(US Dollar = 51.9300 Egyptian Pounds)