Dubai’s stock market has demonstrated robust growth and sustained international investor participation despite ongoing regional challenges, according to Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Addressing a briefing during the listing ceremony of the inaugural Sovereign Retail T-Sukuk Programme by the UAE Ministry of Finance, Ali highlighted the market’s rapid expansion over the past five years, with market capitalization rising from Dh250 billion to surpass Dh1 trillion.
International investors have played a significant role in this growth, with over 200 nationalities engaged in trading activities on the exchange last year. In a notable development this year, foreign liquidity has surpassed domestic trading for the first time, constituting 54 percent of total market activity. Institutional investors account for approximately 71 percent of this international trading volume, which Ali described as “smart money” driving momentum in the market.
Several factors have contributed to this trend, including the entry of quality assets, inclusion in relevant global indices, and consistent efforts to maintain credible market growth aimed at ensuring sustainability. Ali also pointed to regional volatility as a catalyst for increased trading activity, noting that fluctuations caused by geopolitical tensions or rising oil prices often present buying opportunities attractive to investors.
Liquidity on the Dubai stock market rose by 50 percent during the first quarter of 2026 compared to the previous year. Despite this surge, the balance between local and foreign trading activity remained relatively stable. Currently, approximately 84 percent of investors on the exchange are based outside the UAE, and the number of investors in March alone was 30 percent higher than in the same period last year.
Regarding new listings, Ali stressed that the focus is on enhancing the quality of market capitalization rather than the quantity of offerings. In 2025, there were three major listings, including an initial minority offering aimed at progressing a company toward index inclusion, followed by two full public listings. Looking ahead, Ali expressed optimism about the listings pipeline, suggesting that recent regional developments could spur the completion of pending transactions.
On the fixed income market front, the exchange has attracted 33 listings valued at approximately $13.8 billion, reflecting continued growth and market momentum. Ali emphasized that the exchange’s strategy remains focused on deepening and widening the investor base and introducing new initiatives to bolster market development, regardless of external geopolitical or economic pressures.