Dubai and Abu Dhabi saw their combined stock market capitalization reach 3.90 trillion dirhams ($1.06 trillion) by the end of the year, an annual growth of 7.14 percent. The growth in market capitalization is driven by a strong economy, foreign investment and an increase in initial public offerings, according to a report by the Emirati state news agency WAM, reported by Arab News.
The UAE stock market is one of the largest in the region, alongside Saudi Arabia, with a market capitalization of SR10.2 trillion ($2.72 trillion) as of December 31. According to the London Stock Exchange, 48 IPOs were held in the Gulf Cooperation Council region in 2024, raising $12.1 billion.
Dubai Financial Market
LSEG showed that 38 IPOs took place in Saudi Arabia, followed by seven in the UAE, two in Oman and one in Kuwait. WAM added that the Abu Dhabi Securities Exchange saw a 1.01 percent year-on-year increase in market capitalization, reaching 2.99 trillion dirhams by the end of 2024. The Dubai Financial Market’s market capitalization at the end of the year reached 906.9 billion dirhams, up 31.9 percent from the end of 2023.
In terms of trading, the UAE markets attracted over AED 449 billion in value during 2024, with AED 342.4 billion on the ADX and AED 106.7 billion on the DFM. According to the report, the total volume of shares traded on the UAE markets in 2024 exceeded AED 142 billion, with 90.16 billion shares traded on the ADX and 51.85 billion on the DFM.
Central Bank of the UAE
The report showed that trading on the UAE markets took place through over 7.2 million transactions, of which 4.655 million on the ADX and 2.55 million on the DFM. It was in November that the UAE stock markets reached a market capitalization of $1 trillion, largely due to initial public offerings and strong earnings. The UAE’s strong economic performance amid efforts to diversify its economy is also playing a crucial role in boosting the emirate’s stock market.
In December, Emirates NBD said the UAE economy is expected to grow by 5 percent in 2025, driven by accelerated growth in the oil and non-oil sectors. Last month, the UAE Central Bank said the country’s economy is on a stable growth trajectory, with real gross domestic product expected to grow by 4.5 percent and 5.5 percent in 2025 and 2026, respectively.