The Finance World Magazine| Edition: March 2023

the overall number of IPOs from the
GCC increased from 20 issuances in
2021 to 48 issuances in 2022.
The sales increased over three times,
reaching $23.38B. Saudi Arabia took
the lead in the offers, with 34 of the 48
GCC IPOs making their debut on the
Tadawul or Nomu. However, the UAE
took first place in terms of proceeds,
as its 11 issues brought in more than
half (59.7%) of the issuance revenues,
or around $13.96B.
Investing in the
UAE stock market
is typically done
by opening a stock
brokerage account
with a local broker
registered on one of
the three UAE stock
exchanges.
Moreover, citizens of the Emirates
frequently invest in stocks as a means
of increasing their wealth, but how
precisely can you do this in the UAE
stock market? Whether you want
to invest in the UAE market alone
or in other foreign markets as well
depends on your investment plan and
preferences. Hence, we offer you two
alternative ways to invest in stocks in
the UAE. In order to assist you make an
educated choice, we will discuss both
solutions and highlight their essential
components.
1. Investment in the UAE’s stock
market
Opening a stock brokerage account
with a local broker registered on one
of the three UAE stock exchanges is
the most frequent approach to invest
in the UAE stock market (DFM, ADX
or Nasdaq Dubai). Investors must also
apply for a NIN investor number at
the DFM to buy stocks on any of the
listed exchanges. In the following,
we breakdown basic actions you
may take to invest in equities listed
on local UAE exchanges:
• Getting your own Investor
Number (NIN):
To begin, you must apply for an
investor number by completing the
Investor Number Request Form and
submitting it to the DFM together
with your signature and any needed
evidence. You can apply online using
e-Services, in person at the DMF
trading floor, or by contacting a
UAE-based broker.
• Choosing the Right Stock Broker:
Investors who do not have a trading
licence must purchase stocks through:
A local stock broker – You can
pick and choose stock brokers on
the DFM official website and sort
them by their overall rating, A local
UAE Bank – All of Dubai’s major
banks (Abu Dhabi Commercial Bank,
Standard Chartered, and ENDB)
offer brokerage services to both
foreigners and nationals living in
the UAE. The Ras Al Khaimah
Investment Authority as well is
a UAE government agency offering
brokerage services to UAE citizens.
• Picking a Stock to Invest in:
Choosing a stock to invest in should be
based on your fundamental analysis
and study of the company. As a
beginner, avoid investing in small
tech businesses you have never
heard of and stick to the ones you
are familiar with. Using your stock
broker’s or bank’s copy trading or
financial consulting services is an
excellent method to get started.
• Checking in which exchange list
the stock is listed:
Depending on where your preferred
equities are listed, you may pick from
three stock exchanges in the UAE
(DFM, ADX, and Nasdaq Dubai). To
have access to either exchanges, you
must have a valid trading licence
or utilise a stock broker that does.
• Buying Stocks:
To acquire a stock, you must first fill
out a purchase form in which you
specify which stocks and how many
you wish to purchase. When the form
is completed, it is submitted to one of
the exchanges, and you will receive
an ownership certificate verifying
that you own the stock.
2. Investment in the stocks of UAE
and various other international
stocks
Use a more hands-on approach and
create an account with one of the online
stock brokers if you want to invest in
overseas equities in addition to the UAE
stock market. For investors wishing
to purchase foreign equities, online
stock brokers provide a more practical
option to invest in the market. As with
anything else, doing an action online is
quicker and simpler than performing it
in person. Users of online stock brokers
may invest in a variety of markets and
asset classes from a single dashboard
and from any location in the globe.
Additionally, users are not required
to hold a TIN tax number or a NIN
investor number. Additionally, using an
online broker allows you to test your
trading strategies with fictitious funds
and learn a tonne of information using
their instructional resources.
Most Traded stock exchanges in UAE
1. Dubai Financial Market (DFM):
More than 170 Sharia-compliant
enterprises are listed on the
DFM, which was formed in 2000.
The Securities and Commodities
Authority (SCA), which oversees
the DFM, prohibits companies that
are deemed “haram” from being
listed there.
2. Abu Dhabi Securities Exchange
(ADX):
The ADX, which was established
in 2000 and has offices in Ras Al
Khaimah, Al Ain, Fujairah, and
Sharjah, facilitates trading between
UAE businesses.
3. NASDAQ Dubai:
The Dubai International Financial
Center (DFIC) is home to the NASDAQ
Dubai, which was established in 2005
and lists both domestic and foreign
businesses. On the NASDAQ Dubai,
organisations like the Middle East
and Real Estate Investment Trust
and the Bank of London are listed.
March 2023 www.thefinanceworld.com 81