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Dubai Stock Market

Middle-East : Dubai : Life in Dubai : Dubai Finance


In Dubai, there are altogether three main stock exchanges: the Dubai Financial Market (DFM), the Adu Dhabi Securities Exchange (ADX) and the Abu Dhabi Securities Market (ADSM). Other stock exchanges include the Nasdaq Dubai, formerly known as the Dubai Financial Exchange (DIFX), which has its new name since 2008.


The DFM has been operating from the March of 2000, first as a governmental company. From November 2006, it has its own initial public offering (IPO) where 20% has succeeded to sell and the remaining 80% retained by the Dubai Government.


Today, there are over 60 enlisted companies on the Dubai Financial Market, with a growing number every year. Out of these companies, most of them are UAE based, only with a very few stocks owned by companies of other Gulf countries, such as the Arab Insurance Group from Bahrain, Agility Logistics from Kuwait, they have secondary listing on the Dubai Financial Market (DFM).


According to the pre-stated rules, foreigners can have a maximum 49% share out of the total 100% or shares belonging to one company, but many companies also set up rules so that foreigner companies cannot buy their shares or simply they set up a much smaller percentage for the maximum share allowed.


The number of companies offering shares and the operation of the Dubai Stock Market has showed significant increase by 2004/2005 then later, the whole volume has decreased with about 50% on DFM and around 30% on ADSM by 2006. From 2007, the recovery started to realise but the financial crisis, which was just on the way from 2008 had deadly effects on the Dubai stock market. Needless to mention that the crisis had lethal effect on other business sectors too, such as the property sector, being the long-time targeted and for this reason the most promising business sector of Dubai a while ago.  


Therefore, we can say that the whole Dubai Stock Market crashed in 2008. They are recovering from the very bad period ever since. Today, the regulating authority of the Dubai stock market, namely the 3 main stock agencies in Dubai, is the Emirates Securities and Commodities Authority (ESCA). The Nasgaq Dubai, formerly known as (DIFX) opened in the Dubai International Financial Centre or (DIFC) back in 2005 in order to trade with international stocks in Dubai and the Dubai Financial Services Authority (DFSA) is regulating it.


There are not much information in English about the exact things and information relating to the Dubai Stock market but at least the international investing community studies Middle East stocks and (property)market with increased attention. The most known organizations who make annual research reports ont he movement and factors of the Middle Eastern (Dunai) stock market, are the EFG-Hermes (Egypt), The National Investor (TNI), and Shuaa Capital (UAE). These produce various types of research reports. Most broker companies are in possession of regular newsfeed and make their own reports. The international stock market monitoring organizations, such as the Credit Suisse , the HSBC, the Morgan Stanley and the Numura are now producing Dubai and UAE related reports till 2008. The large companies are covered by the reports of Reuters and Bloomberg.


ShareWadi.com has summerized information on its website together with a starters-guide on stock market and movements and information about buying shares and step into the Dubai Stock Market. The site also has a nice forum in stock related topics and of course its in English.You may also read some stock related information in many of the English languge Arabic newspapers.