Stocks - United Arab Emirates

United Arab Emirates

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In the United Arab Emirates, the market capitalization in the Stock market is projected to reach US$1.02tn in 2025.
It is anticipated to exhibit an annual growth rate (CAGR 2025-2026) of 3.20%, resulting in a projected total of US$1.05tn by 2026.
The market volume in the Stock market of the United Arab Emirates amounts to US$87.58bn in 2025.
A global comparison indicates that the highest market capitalization is attained the United States, with a figure of US$54.9tn in 2025.
In the Stock market, the number of trades in the United Arab Emirates is expected to amount to US$6.29m by 2026.
The United Arab Emirates' stock market is witnessing increased investor interest, driven by robust economic diversification and a growing focus on sustainable investment initiatives.

Market Capitalization

Market Capitalization Change

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Feb 2025

SOURCE: Statista Market Insights

Market Capitalization Comparison

NOTES: Data was converted from local currencies using average exchange rates of the respective year.

MOST_RECENT_UPDATE: Feb 2025

SOURCE: Statista Market Insights

The Buffett Indicator

MOST_RECENT_UPDATE: Feb 2025

SOURCE: Statista Market Insights

Analyst Opinion

The Stocks Market in the United Arab Emirates is witnessing steady growth, influenced by factors like increased investor interest, government initiatives to enhance market liquidity, and a diversified economy that attracts both local and foreign investments.

Customer preferences: Investors in the United Arab Emirates are increasingly gravitating towards sustainable and socially responsible investment opportunities, reflecting a growing awareness of environmental and social governance (ESG) principles. This trend is fueled by a younger, more diverse demographic that values ethical practices and corporate transparency. Additionally, the rise of tech-savvy investors has led to increased interest in fintech solutions, enabling easier access to stock trading and market insights, thereby reshaping traditional investment behaviors in the region.

Trends in the market: In the United Arab Emirates, the stock market is experiencing a notable shift towards sustainable investing, with a surge in demand for Environmental, Social, and Governance (ESG) compliant assets. This trend is driven by a younger generation of investors who prioritize ethical considerations and corporate accountability. Concurrently, the adoption of fintech solutions is transforming trading practices, making stock market participation more accessible. These developments hold significant implications for industry stakeholders, as they may need to adapt their strategies to meet the evolving preferences of this socially conscious investor base.

Local special circumstances: In the United Arab Emirates, the stock market is uniquely influenced by its strategic location as a global business hub and its diverse expatriate population, which drives demand for varied investment products. The cultural emphasis on family wealth preservation and entrepreneurial spirit fosters a growing interest in sustainable investing, particularly among younger investors. Additionally, the UAE's progressive regulatory framework encourages innovation, facilitating the rise of fintech solutions that enhance market accessibility and transparency, reshaping traditional trading practices.

Underlying macroeconomic factors: The performance of the stock market in the United Arab Emirates is significantly shaped by macroeconomic factors such as global oil prices, trade dynamics, and domestic economic growth. As a major oil exporter, fluctuations in oil prices directly impact government revenues and investor sentiment. Additionally, the UAE's strategic initiatives to diversify its economy, reduce dependence on hydrocarbons, and foster sectors like tourism and technology enhance market resilience. Fiscal policies aimed at attracting foreign investment, coupled with a robust regulatory framework, further stimulate market activity. Global economic trends, such as interest rate changes and geopolitical stability, also play a crucial role in shaping market performance and investor confidence.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on market capitalization/ market volume/ number of trades/ number of listed domestic companies data within the stock market.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data from Company Insights, World Bank, the Federation of Exchanges as well as stock exchanges, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer price index (CPI), total investment (% of GDP), trade (% of GDP), household income, internet penetration, deposit interest rate, lending interest rate, central bank interest rate, unemployment rate, internet penetration and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In the market, we use both the HOLT-damped Trend method and the ARIMA method to forecast future development. The main drivers are GDP per capita, consumer price index (CPI), and central bank interest rate. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

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