ABU DHABI: Â The financial landscape of the United Arab Emirates (UAE) experienced a significant transformation in 2024, as evidenced by the remarkable growth in the combined market capitalisation of the Dubai and Abu Dhabi stock markets.
The market cap surged by seven per cent, reaching AED3.905 trillion, up from AED3.648 trillion at the end of 2023. This positive trajectory was propelled by a robust economy, an influx of foreign investments, and a series of successful initial public offerings (IPOs), underscoring the UAE’s status as a leading investment destination in the region.
The Abu Dhabi Securities Exchange (ADX) played a pivotal role in this growth, with its market capitalisation rising to AED2.998 trillion by December 31, 2024, compared to AED2.961 trillion the previous year.
Investor confidence
The increase reflects not only the resilience of the local economy but also the effectiveness of government initiatives aimed at enhancing market attractiveness. The ADX’s performance illustrates a sustained confidence among investors, both domestic and foreign, in the potential of Abu Dhabi’s diverse economic sectors.
Similarly, the Dubai Financial Market (DFM) demonstrated impressive growth, boosting its market capitalisation to AED906.912 billion at the end of 2024, a substantial increase from AED687.5 billion in 2023.
The growth can be attributed to a combination of factors, including strategic government policies, a favorable regulatory environment, and an active participation of institutional investors. The DFM’s performance not only highlights the resilience of the Dubai economy but also its ability to adapt and thrive in a competitive global market.
Both exchanges experienced significant increases in trading volumes, further solidifying the UAE’s reputation as a vital investment hub. In 2024, the local markets attracted more than AED 449 billion in trading value, with AED342.4 billion attributed to the ADX and AED106.7 billion to the DFM.
The total volume of shares traded exceeded 142 billion, with 90.16 billion shares on the ADX and 51.85 billion shares on the DFM. This remarkable trading activity, facilitated by over 7.2 million transactions, reflects a growing investor appetite and confidence in the UAE’s financial markets.
The upward momentum observed in 2024 not only reinforces the UAE’s position as a prominent investment destination but also highlights the effectiveness of its economic diversification efforts. The FTSE ADX General Index closed at 9,414.460 points, while the DFM General Index ended the trading year above 5,158.670 points, both indicative of a healthy and thriving market environment.
