The Finance World Magazine| Edition: March 2023

Stock Market
How and Why to Invest in the UAE Stock
Market
The number of investors in Dubai’s capital market skyrocketed in just one year due
to the growing number of businesses choosing to go public and list their shares on
the local exchange. In 2022, the Dubai Financial Market saw an influx of 167,332
new investors, bringing its total investor base to over one million, a massive 23-time
increase from the previous year.
As more businesses decided
to float their shares and
list on the local exchange,
the number of investors
in Dubai’s capital market increased
dramatically over the course of a year.
In 2022, the Dubai Financial Market
(DFM) received 167,332 new investors,
increasing its investor base to over one
million, a 23-fold increase from the
previous year. Its net profit increased
by more than 40% as well.
Nearly half (48.7%) of the investors
with net purchases of AED 5B ($1.4B)
were people from more than 200
different countries, demonstrating
the significant presence of foreigners
on the stock exchange, according to
DFM. As economies in the GCC area
make a solid recovery following the
epidemic, many firms decided to float
their shares last year amid significant
investor demand. The Dubai Electricity
and Water Authority (DEWA) and Salik,
among other prominent governmentbacked
and private businesses,
launched their first public offerings
(IPOs) in Dubai.
In an effort to draw in more investors
and increase activity on the local stock
market, Dubai had earlier announced
plans to float 10 state-backed
enterprises. “Our relentless focus
on our capital markets development
strategy has borne fruit, making DFM
one of the most active markets globally
for new IPOs and listings of 5 [entities],”
said His Excellency Helal Al Marri,
Chairman of DFM.
The DFM Company’s net profit for
the previous fiscal year increased by
41.7% to AED 147.1M ($40M), mirroring
the “great improvement” in trading
value to AED 90B, reflecting the surge
in investor interest in the local capital
market. Despite some volatility, the
GCC’s IPO market saw solid activity all
year long. According to Kamco Invest,
DFM’s net profit rose 41.7% to AED 147.1M ($40M)
due to an improvement in trading value (AED 90B) and
increased investor interest in the local capital market.
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80 www.thefinanceworld.com March 2023