Stock Market Index in Dubai surpasses 6000-point barrier, reaching a 17-year peak
The Dubai Financial Market (DFM) has been a significant player in the Gulf Cooperation Council (GCC) financial markets, particularly in the UAE. However, its stock market performance in 2021 and recent years has been more modest compared to the leading GCC peers like Kuwait and Saudi Arabia's Tadawul.
In 2021, the DFM's surge was spurred by financials, real estate, and some of the recent initial public offerings (IPOs). Following a 27% rise last year, DFM is up by another 16% year-to-date. Notable gains were seen by companies such as Emaar, Emirates NBD, Mashreq, and Dubai Islamic Bank, among others.
Emaar's listed stocks closed the day with an increase of over 2%, Emirates NBD rose by 3.97%, Mashreq saw a gain of 5.28%, and the Dubai Islamic Bank experienced a growth of 1.9%. The DFM has even surpassed the 6,000-point mark for the first time in 17 years, with an increase of 2.15% on July 17, 2025. The DFM index closed the week at over 6,103 points, and the market is poised for further gains as the 'rest of the world trade gathers pace among international and domestic institutional and retail investors.
Despite these positive developments, the DFM's performance has been mixed, with some UAE companies showing strong gains, but others experiencing declines. This volatility is evident in the data from 2025, where companies like Mannai Corporation and Ezdan Holding Group showed strong gains, but these data points illustrate the ongoing regional market volatility.
Dubai remains an important financial and commercial hub, with its vibrant startup scene. The city hosted over 5,600 startups launched in Q2 2024, emphasizing its role in innovation within the GCC. However, the UAE's IPO proceeds have sharply declined by 88% in the first half of 2025, signaling some cooling in capital market activities compared to Saudi Arabia’s stronger IPO performance.
In terms of its current standing among global peers, the GCC markets are seeing a mixed picture. While Kuwait and UAE markets show sector-specific gains and losses, Saudi Arabia’s Tadawul (TASI) index is slightly down by 0.5% recently. Despite the IPO decline, the UAE's position is strong in innovation and exports.
In conclusion, while the DFM's stock market performance may not be as impressive as some of its GCC counterparts, its role as a financial and commercial hub, as well as its thriving startup scene, make it a key player in the region. The UAE's recent cooling in capital market activities, as evidenced by the decline in IPO proceeds, is a challenge that the country is currently facing. However, with its strong innovation ecosystem and exports, the UAE remains a significant player in the GCC and global markets.
- The DFM's surge in 2021 was driven by sectors such as financials, real estate, and initial public offerings (IPOs), with notable gains seen by companies like Emaar, Emirates NBD, Mashreq, and Dubai Islamic Bank.
- The DFM has recently surpassed the 6,000-point mark for the first time in 17 years, with a 2.15% increase on July 17, 2025, and is expected to see further gains as international and domestic institutional and retail investors gather pace in the world trade.
- Despite the positive developments in the DFM, there is volatility within the UAE market, as seen in the mixed performance of companies like Mannai Corporation and Ezdan Holding Group in 2025.
- While the UAE's IPO proceeds have declined by 88% in the first half of 2025, the country remains strong in innovation and exports, maintaining its status as an important player in the GCC and global markets, particularly in the sectors of technology and business.
