Published on: October 10, 2023
Author: Derar Hasn
|Table of Content
|How to invest in US stocks from Dubai
|How to buy US stocks in the UAE
|What is the Dubai stock market?
|Get to know the Dubai Financial Market (DFM)
How to invest in the Dubai stock market
Exploring the Middle East can be thrilling, especially when you’re looking at the bustling economy of Dubai. By investing in the Dubai stock market, you don't just invest in companies; you invest in the future of one of the world's fastest-growing cities. This guide will show you how to delve into this lucrative market without getting tangled in the traditional (and more complicated) approach.
What is the Dubai stock market?
Did you know the Dubai stock market isn't a singular entity? It boasts not one, but two exchanges: Dubai Financial Market (DFM) and Nasdaq Dubai, doubling your avenues for investment. It means more opportunities for your investing and trading journey.
Get to know the Dubai Financial Market (DFM)
As one of the leading financial markets, the Dubai Financial Market (DFM) is a renowned stock exchange located in Dubai, United Arab Emirates. In a short period, the DFM has emerged as a leading financial market in the region. This solidifies Dubai's status as a financial center in the Middle East and North Africa (MENA) while strengthening its position as a robust capital market hub worldwide. The DFM adopts international best practices to add to the evolving needs of local and international investors.
As one of the largest and most liquid exchanges in the MENA region, the DFM stands alongside Nasdaq Dubai, Abu Dhabi Securities Exchange (ADX), Tadawul, and Qatar Stock Exchange (QSE). With its establishment in 2000, the DFM serves as a platform for trading a wide range of financial instruments, including stocks, bonds, derivatives, and exchange-traded funds (ETFs).
Initially wholly owned by the Dubai government, the DFM became a public joint-stock company in 2006. As a regulated entity under the Securities and Commodities Authority (SCA), Dubai's stock exchange plays a crucial role in fostering the growth of the UAE's financial sector. It also offers opportunities for both local and international investors to take part in the region's economic bloom.
Get acquainted with Nasdaq Dubai
Nasdaq Dubai is the international financial market in the Middle East, providing a unique investor pool that combines regional and international wealth. It's a platform for companies to raise funds and for investors to discover exciting opportunities. This UAE stock exchange was launched in 2005 as a partnership between the Dubai Financial Market and Nasdaq OMX Group.
Nasdaq Dubai is a platform for trading regional and international assets, such as stocks, bonds, and real estate investment trusts (REITs). Nasdaq Dubai blends international standards with regional knowledge and understanding, supporting the growth of listed companies in the region and beyond. Thanks to the renowned Nasdaq brand, Nasdaq Dubai gives instant recognition and visibility to listed companies worldwide.
The Dubai Financial Services Authority (DFSA) regulates the stock exchange, which is located in the Dubai International Financial Centre (DIFS). Dubai Financial Market holds a 66% ownership stake in Nasdaq Dubai and is the major shareholder.
The difference between the DFM and Nasdaq Dubai
So, what is the difference between Nasdaq Dubai and the DFM? Well, both the DFM and Nasdaq Dubai offer investment opportunities. However, the DFM focuses primarily on the local market, while Nasdaq Dubai seeks to draw foreign investors.
What are Dubai stock market timings?
Dubai Financial Market is open from Monday to Friday, with trading sessions happening between 10:00 am and 3:00 pm (GST).
Nasdaq Dubai has the same schedule. Trading days are from Monday to Friday and trading hours are 10:00 am and 3:00 pm (GST).
How to buy stocks in the UAE
Interested in trading or investing in Dubai by tapping into big players such as Dubai Islamic Bank, Emirates NBD Bank, Dubai Electricity and Water Authority (DEWA) , or Emaar Properties? These are all listed on the Dubai Financial Market, and there are two ways to invest in them.
The first (and more complicated) one is to apply for your DFM Investor Number (NIN) using the DFM mobile app, or through a DFM licensed brokerage.
The second one, much more convenient, is opening an account with a leading regional brokerage like amana. It’s Dubai’s neo-broker, regulated by multiple reputable international regulatory authorities.
So, what should you do to get access to the Dubai stock exchange through amana?
Step 1. Download for free the amana app from the App Store or Google Play.
Step 2. Open a free account.
Step 3. Deposit your funds.
Step 4. Invest.
And there you have it! Forget about the hassle of applying for an NIN.
How to invest in the UAE stock market online
Once you've completed the above straightforward steps, a world of limitless opportunities in the UAE stock market will be ready and waiting for you.
With amana, you have the power to trade and invest in well-known names that you see every day, such as Commercial Bank of Dubai, ARAMEX, Dubai Islamic Bank, and many more. No matter where you are, the amana app grants you access to both unleveraged and leveraged assets. This unique app allows you to make long-term investments or speculate on the Dubai share market, taking advantage of fluctuating prices.
Thanks to the amana app, investing in the Dubai stock market has never been easier! You can now invest in Dubai stocks without having to buy whole shares. Instead, buying fractional shares is possible, allowing you to own a small portion of a company's shares. What a great way to diversify your investment portfolio!
And the best part? By purchasing shares of local companies through amana, you can potentially earn dividends. Dividends are a share of a company's earnings distributed to investors. So, it might be a good idea to consider including dividend-paying Dubai companies to diversify your investments. But remember to carefully review each company's dividend policy and eligibility criteria.
If you’re wondering whether you can trade and invest in the Dubai stock market from a different country, the answer is: “Yes”! amana has revolutionized the financial game with our innovative amana app, providing you with unprecedented access to the Dubai stock market regardless of your location (with a few exceptions). Simply download the amana app and immerse yourself in the world of the DFM, all from the comfort of your own home.
Why invest in the Dubai Financial Market?
In the first half of 2023, the Dubai Financial Market brought 25,699 new investors, with 74% coming from abroad. And that’s only the beginning. The trading value hit AED 46 billion, and market capitalization jumped by 12% to AED 652 billion.
Companies from various industries, including telecommunications, healthcare, banking, real estate, energy, and retail, are listed on the DFM. This diverse range of sectors provides investors and traders with a wide array of investment and trading opportunities. Some major names in the DFM include Emirates Central Cooling Systems Corporation (EMPOWER), Al Ansari Financial Services and Emirates Integrated Telecommunications Company.
Dubai's thriving economy, stability, and tax-free environment make it an attractive investment destination across various industries. The city, known for its innovation, trade, and banking, stands as a hub of entrepreneurship, propelling businesses within Dubai to new levels of competitiveness.
So, considering all the mentioned factors, the DFM and Nasdaq Dubai might be your gateway for investing in Dubai.
Thanks to brokerage firms like amana, investing and trading in the Dubai share market has become incredibly accessible. With just a few simple steps, you can explore Dubai stocks and begin trading and investing in the dynamic market of the United Arab Emirates.
The amana app enables you to actively participate in the Dubai stock market from virtually any place worldwide. Before immersing yourself in the market, it’s crucial to conduct thorough research on the companies that you’re interested in. By harnessing the power of technology and exercising due diligence, you can embark on a fruitful investment journey across the UAE stock market.