MENA

UAE financial markets hit historic records

Majde Nouri
Majde Nouri
calendar
February 18, 2025
header background
  • The UAE stock markets are thriving in 2025, fueled by strong corporate results and growth in key sectors. 
  • Analysts expect AED 1 trillion boost to UAE market value in coming years through IPOs.
  • Emaar and DIFC are setting new performance records, solidifying the UAE's global financial standing.

Introduction:

The UAE stock markets have witnessed a distinctive start since the beginning of 2025, supported by the results of distinguished companies’ business, and great optimism about the UAE stock market performance, whether this year or in the coming years.

Since the start of 2025, the Dubai Financial Market Index has recorded a record number, the highest since May 2014, which was supported by economic growth in many sectors such as real estate and tourism, in addition to positive corporate business results.

Rush into UAE financial markets offers two signals

Some analysts said that the market value of shares in the UAE market may grow by one trillion dirhams ($272.3 billion) over the next four years, due to the noticeable rush of new initial public offerings that are expected to be recorded by both the Dubai and Abu Dhabi stock exchanges, both private and public.

This number reflects two facts, the first of which is that it expresses the number that was added to the market cap of the United Arab Emirates during the past four years especially in November of last year.

The second fact confirms the UAE’s position in terms of initial public offerings in the Middle East and North Africa region, which was praised by Ernst & Young, which confirmed that this region was the first in the world in 2024 in this field, while also maintaining a positive outlook for the coming year, including the UAE.

Seven initial public offerings last year in the UAE raised more than AED 22 billion from the market, six of the 10 largest IPOs were in the Middle East and North Africa region.

In fact, all initial public offerings witnessed very strong demand, reflecting a strong appetite by investors for Emirati companies, whether at the level of individual or institutional investors.

UAE Financial Markets continue to break records:

In turn, companies listed on the UAE financial markets continue to record numbers for the year 2024, including Emaar, which announced record revenues in 2024, after reaching AED 19.1 billion (about USD 5.2 billion), a huge increase of 61% compared to 2023.

On another level, the UAE economy continues to record numbers, the latest of which is related to the Dubai International Financial Centre(DIFC).

DIFC announced its strongest annual performance to date, with revenues of about AED 1.78 billion, an increase of 37% over last year, with 1,823 new companies joining the center during 2024, bringing the number to about 7,000 companies and more than 46,000 specialists in the center.

All of this reflects the UAE's vision to consolidate Dubai's position as a leading global financial center in various fields and sectors.

Disclaimer: The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell. The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI. Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.