UAE Financial Market: A Unique Market That Allows Investors to Trade Locally and Globally

The United Arab Emirates is a unique country due to the Islamic principles and sharia laws applied by the country. As a result, some investors are questioning the legality of security exchanges in the UAE. Trading is legal in UAE and investors may trade financial securities and commodities at the UAE financial market.

The financial market in UAE was only established in March 2000, but it doesn’t make it less than the older stock markets in other countries. 

UAE Financial Market

Investors who want to trade in the United Arab Emirates financial market need to understand more about this market. The financial market in this country primarily deals in mutual funds, bonds, Islamic bonds (Sukuk), metals, and other financial securities and commodities.

In addition, the financial market operates based on Islamic principles so that it doesn’t approve companies that are against the sharia laws. There are several financial markets in UAE.

  1. DFM

Dubai Financial Market or DFM was established in 2000 and has over 170 companies listed with it. This stock market is the first financial market in the world that operates on the basis of the sharia laws.

DFM mostly deals in equities, bonds, ETFs, and securities. Some companies that are registered in this financial market are Air Arabia, Emirates NBD, Oman Insurance Company, Dubai Islamic Bank, and Dubai Investments.

  1. ADX

Abu Dhabi Securities Exchange or ADX was established in the Q4 2000. Similar to DFM, ADX works with 5 main values, i.e. integrity, transparency, confidentiality, innovation, and efficiency.

ADX branches are located in various cities. It trades a number of securities and commodities, such as banking, hotels, telecommunications and insurance. Some of the companies registered at ADX are ADCB, Union National bank, and Qatar Telecommunications.

  1. Nasdaq Dubai

This stock market is unique because it trades stocks of international and local companies. Companies that registered at Nasdaq Dubai are able to trade their securities globally so that foreign investors will find exciting opportunities in them.

Nasdaq deals in Sukuk, equities, conventional bonds, real estate investment trusts, exchanged-traded funds, and exchanged-traded commodities. Unlike DFM and ADX that are governed by SCA, Nasdaq Dubai is governed by DFSA

How to Invest in UAE Stock Market

Investors who want to trade in the UAE financial market must register for Investor Number or NIN, find a brokerage firm, and open a trading account at the firm before they are able to trade stocks. However, it is essential for investors to have researched before trading due to the volatility of the stock market.

Those who want to succeed in trading the stocks in one of the above financial markets need to have assistance on UAE competitive intelligence so that they will gain better knowledge on market trends.

Foreign investors who need this assistance may contact Market Research UAE, a market consultant agency that helps its client to explore and enter the local markets of UAE successfully.

The financial markets in UAE welcome both UAE residents and non-residents to trade stocks in them. However, they must have NIN, a valid passport, and a trading account. Moreover, those that are eligible to trade in UAE stock markets must be 21 years old or older.

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