Whether you’re a beginner or an experienced investor, investing in the United Arab Emirates (UAE) stock market is a great opportunity to build wealth and diversify your portfolio.
As a rapidly developing country, the UAE continues to attract more local and international investors seeking to protect and grow their wealth.
In this guide, we will show you how to invest in the UAE stock market and set yourself up for long-term financial success.
What is the Stock Market?
A stock market is an exchange where investors trade, sell, and buy company shares and other financial securities. It allows publicly traded companies to raise funds for further market expansion, repay their debts, etc.
On the stock exchange, you can invest in different types of financial products, including:
- Investment funds: Pool funds from multiple investors to purchase a variety of financial securities. They are run by a fund manager who invests on behalf of the individual investors.
- Hybrid securities: Combine two or more asset classes, such as bonds and stocks. Hybrids are typically marketed to institutional investors.
- Fixed income: Pay investors a fixed amount of money over a specific amount of time. Fixed income products (such as corporate and government bonds) typically carry less risk than stocks.
- Variable income: Pay investors a variable amount of money depending on the market performance. Variable income securities include stocks and some bonds.
While there are differences between various types of securities, they all have the same goal: making your money work for you.
Some of the world’s most well-known stock exchanges include the New York Stock Exchange, NASDAQ, and the London Stock Exchange.
In the UAE, you can buy stocks using three exchanges:
- Dubai Financial Market (DFM)
- Abu Dhabi Securities Exchange (ADX)
- NASDAQ Dubai
Both DFM and ADX were founded in 2000, while NASDAQ Dubai was launched in 2005.
Why You Should Buy Stocks in the UAE
Is the UAE stock market a viable option for international investors?
The answer is a resounding yes.
Industries such as tourism, real estate, and technology fuel the country’s fast-growing economy. In fact, recent forecasts estimate an economic growth of 6.2% in 2025.
Government policies also support investors—there is no income, capital gains, or corporate tax in the country. And it has double taxation agreements with over 140 countries, including the United Kingdom.
Additionally, investing in the UAE allows you to diversify your portfolio. Instead of keeping all of your investments in the European market, for example, you’ll spread them over multiple regions and reduce risk.
Lastly, there’s the potential for high returns. In September 2024, Dubai’s stock market reached a 10-year high after growing 12% in Q3, ranking it among the best-performing equity benchmarks globally.
But it’s not just stocks you should consider investing in. Purchasing different types of assets (such as property or private equity) in the UAE prevents you from putting all your eggs in the stock market basket, insulating you from unexpected economic downturns.
Speaking to an investment advisor will help you weigh different options and build a profitable portfolio consisting of different assets.
How to Buy Stocks in the UAE
To get started with investing in the UAE, the first step is to open an account with a brokerage firm. The DFM even offers a broker directory on their website to help you find one that best meets your financial needs.
The broker will help you get a National Investor Number (NIN) which is a requirement to participate in the stock market.
When evaluating different brokerage firms, note that they don’t always offer the same services:
- Full-service: Provide comprehensive wealth management services that include personalised investment advice, finding investing opportunities, and managing your portfolio.
- Online brokerage: Enable investors to manage their wealth and invest using a digital platform.
- Discount brokerage: Offer stock trading services without personalised wealth management or investment advice.
After you settle on a brokerage firm, it’s time to choose the stocks you’ll invest in. (If you opt for a full-service broker, they’ll guide you through this process.
Do plenty of research—dig into the company’s financials and pay attention to metrics such as revenue and profit margins. Look into their product development to get an idea of their future growth potential.
Also, remember to analyse broader industry trends and competitor moves that could impact the company’s market performance. For example, Facebook stock fell when Apple launched new privacy features in 2021 that impacted the social network’s advertising features.
Once you’re ready to invest, there are a couple of ways to purchase stock. Many brokerage firms in the UAE provide an online platform or mobile app where you can place stock orders easily. But it’s also possible to sell or buy stocks over the phone.
Factors to Consider Before You Buy Stocks in the UAE
One of the key factors to consider before purchasing stock in the UAE is your personal risk tolerance and investment goals.
Let’s say you’re investing in your retirement. In this case, a conservative investment portfolio that includes stocks alongside fixed income securities will balance out risk. Plus, it will prevent market volatility from taking a big chunk out of your pension pot.
Remember to read up on rules and regulations regarding investing. The Securities and Commodities Authority (SCA) is in charge of overseeing financial markets in the UAE, and their website contains a wealth of information regarding market rules and regulations.
The SCA website also includes a list of licensed companies (brokerage firms, investment fund managers, etc.) to help you make sure you work with trustworthy organisations.
When buying stocks, consider market trends and any geopolitical events that could impact your investments. Elections, oil prices, and employment figures are just a couple of examples to keep in mind.
Obviously, this is a lot of information to take in if you have little or no experience investing in the UAE. Take your time weighing different options and don’t hesitate to get help from wealth management experts such as MHG Wealth Management.
We help our clients with:
- Investment management (including alternative and property)
- Wealth management
- Retirement planning
- Financial advice (financial education, tax optimisation, estate planning, and accountability and monitoring)
Our approach to investments is holistic—we assist with allocating assets, buying and selling stocks, and continuous performance monitoring. We can also answer any specific questions about how to buy stocks in the UAE, helping you make the most informed decision.
When working with MHG Wealth, you’ll define your goals and research various investing options together with your investment advisor. Diversifying your portfolio with various asset classes is key since long-term success requires more than investing in an outperforming share.
Depending on your goals, combining stocks with commodities such as gold or silver could be the best path. Or you might invest in hedge funds alongside art and antiques. Regardless of your specific picks, MHG Wealth will support you with 360 portfolio management to minimise risks and increase returns.
Protect and Grow Your Wealth in the UAE
The future may be uncertain, but your finances don’t have to be. By purchasing the right stocks in the UAE, you’ll diversify your portfolio and benefit from a rapidly expanding economy.
Whether you’re just starting your investing journey or looking for a new region to invest in, the financial advisors at MHG Wealth are here to help you achieve your financial goals.
