The stock markets in the UAE witnessed phenomenal growth throughout 2024, buoyed by strong economic conditions, heightened foreign investments, and a notable influx of initial public offerings (IPOs). Both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) showed impressive increases in their market capitalization and trading volumes, solidifying the UAE's status as one of the top investment hubs in the region.
By the end of 2024, the combined market capitalization of the Dubai and Abu Dhabi stock exchanges had exceeded AED3.905 trillion, representing a substantial rise from the AED3.648 trillion recorded at the end of 2023. This stellar performance illustrated how the local markets managed to sustain the momentum established over previous years, thereby affirming their reputation as significant investment destinations on both regional and global scales. The year concluded with approximately AED257 billion (around $70 billion) added to the total market capitalization.
The performance of both markets was particularly noteworthy. The ADX reported a market capitalization of AED2.998 trillion by the close of trading on December 31, 2024, rising from AED2.961 trillion at the previous year-end. Concurrently, the DFM also enjoyed growth, with its market capitalization climbing to AED906.912 billion, compared to AED687.5 billion the year before.
Analyzing trading activity reveals even more impressive figures. Throughout 2024, the local markets attracted over AED449 billion in trading value, segmented between AED342.4 billion on the ADX and AED106.7 billion for the DFM. The total volume of shares traded surpassed 142 billion, composed of 90.16 billion shares on the ADX and 51.85 billion on the DFM. Notably, the trading was executed through over 7.2 million transactions, with ADX recording 4.655 million transactions and DFM 2.55 million.
By the close of the trading year, the FTSE ADX General Index concluded at 9,414.460 points, and the DFM General Index finished above 5,158.670 points. This performance reflects not just the resilience of the financial markets but also the growing investor confidence they inspire.
"The local markets maintained the momentum they had built in previous years, solidifying their reputation as one of the most significant investment destinations both regionally and globally,"an unnamed source remarked, highlighting the importance of the growth achieved by these exchanges.
Looking forward, this strong market performance alludes to the UAE's capacity to navigate challenges and leverage opportunities effectively. The combination of indicative economic strength and positive trading activities bodes well for future investments, making the UAE even more attractive to both local and foreign investors.