The UAE equity markets are showing impressive growth linked to increasing interest in shariah investments and strong demand from investors.
Dynamics of UAE Equity Markets
Over the past year, the local equity markets in the UAE have delivered outstanding performance. The DFM General Index surged more than 27% in 2024, continuing its upward trend with an 18% increase in 2025. The key drivers of this growth include the financial sector, real estate, and newly listed infrastructure companies.
Role of the Financial Sector
The financial sector in the UAE has significantly contributed to market growth. For instance, shares of Abu Dhabi Islamic Bank (ADIB) have risen over 98% in the past year, supported by rising profit margins and increasing demand for shariah-compliant financial services. Stocks of Amlak Finance, a key Islamic mortgage provider, have also more than doubled in value over the year.
Outlook and Macroeconomic Conditions
The emergence of high-profile IPOs like Parkin has created new investment opportunities. A projected real GDP growth of 4.4% in 2025 and 5.4% in 2026 further bolsters the positive market trend. The UAE continues to attract capital from both Islamic and conventional investors due to strong economic fundamentals and the overall appeal of shariah investments.
The exceptional performance of equities in the UAE markets, combined with increasing investor confidence and the appeal of shariah assets, signals sustained regional interest and opportunities.
