Money and business

The growth rate and record trading of Dubai Financial confirm its investment attractiveness

Two financial analysts confirmed that the Dubai Financial Market has emerged during the year 2025 as a strong and attractive investment destination, with a profitability ratio of 9.9 times, which is the lowest in the Gulf, which means that investors are paying less for every dirham of the company’s profits compared to other Gulf markets, noting that the growth rate and record trading of “Dubai Financial” confirm its investment attractiveness.

They pointed out to Emirates Today that the management of the Dubai Financial Market succeeded in providing modern investment tools and mechanisms that helped investors increase liquidity, through lending and borrowing policies, and continuous disclosure of results and news.

The Dubai Financial Market achieved a strong performance during 2025, recording a net profit before tax of 1.06 billion dirhams, a growth of 158% compared to 2024.

In detail, the Dubai Financial Market achieved a strong performance during 2025, recording a net profit before tax of 1.06 billion dirhams, a growth of 158% compared to 2024, supported by increased trading activity and growing international participation. The market index rose by 17.2%, and the market value of listed companies reached 992 billion dirhams, which reflects the strength of the market and its economic flexibility.

The total consolidated revenues of the market increased by 102% to 1.28 billion dirhams during the past year, supported by an increase in trading activity and investment returns, in addition to non-recurring income from the sale of an investment property.

The market witnessed record trading activity, with the total value of trading reaching 174 billion dirhams, an increase of 63% year-on-year, with an average daily trading volume of 692 million dirhams, the highest in more than a decade.

The average number of daily trades also increased by 31%, supported by increased participation from institutional investors and growth in cross-border trading.

The market attracted about 97,349 new investors, of whom foreign investors accounted for 84%, accounting for 51% of the total trading activity, while institutional investors accounted for 71% of trades.

Thus, the total investor base exceeded 1.25 million investors, which confirms the attractiveness of the Dubai Financial Market at the regional and international levels.

In addition, Wadah Al-Taha, a member of the National Advisory Board at the Chartered Institute for Securities and Investment, confirmed that “the Dubai Financial Market has emerged during the year 2025 as a strong and attractive investment destination, with a P/E of 9.9 times, which is the lowest in the Gulf, which means that investors are paying less for every dirham of the company’s profits compared to other Gulf markets, which reflects the true value of the market despite the index rising by 17% over the past year.”

Al-Taha pointed out that the book value multiplier reached 1.78 times, meaning that the share price is nearly double the book value of each share, which indicates that the shares are not inflated and remain attractive to investors searching for the true value of the assets.

He noted that the market recorded a record increase in trading value by 66%, reaching $47.5 billion during the past year, supported by the joining of more than 97,000 new investors and an increase in foreign accounts and investments.

He also stressed that the continued lucrative cash dividends contributed to enhancing the attractiveness of the market, which reflects the ability of the Dubai Financial Market to achieve strong profits and maintain its distinguished investment position.

For his part, the trading director at Daman Securities Company, Wael Mahdi, said, “The rise in the general index of the Dubai Financial Market during 2025 by 17.25%, to be the best among the Gulf markets, was natural for it to reflect positively on the financial results.”

Mahdi pointed out that the Dubai Financial Market announced net profits exceeding one billion dirhams, achieving a growth of 158% compared to 2024, which reflects the strength of investment activity and the improvement in the market’s operational performance.

He explained that the rise in the index was the result of several main factors, most notably the increase in trading volumes, the increase in the number of investors, and the increase in foreign investments, pointing out that the market attracted about 97 thousand new investors during the last period.

He added that foreign investors constituted more than 50% of the total new investors, which confirms the success of the Dubai Financial Market in enhancing its investment attractiveness at the regional and global levels.

He stated that the listing of distinguished companies, including government companies, during the past two years, contributed significantly to enhancing investor confidence, diversifying investment opportunities, and attracting new liquidity to the market.

He stressed that the diversity of listed companies, strong governance, and stability of profits and cash distributions, in addition to the strong financial results announced by the companies during the years 2024 and 2025, helped increase investment demand and continue the momentum in trading.

He said that this activity provided investors with multiple opportunities, whether through rising stock prices or cash returns, explaining that the success of the recent listings contributed to expanding the market base and providing various investment options that support sustainable growth. He pointed out that the management of the Dubai Financial Market succeeded in providing modern investment tools and mechanisms that helped investors increase liquidity, through lending and borrowing policies, enhancing transparency, and continuous disclosure of results and news.

He added that these factors played a major role in improving the market’s performance in general, stressing that the strong announcement of the financial results was the culmination of this performance.

He explained that the Board of Directors of the Dubai Financial Market announced a cash dividend of 6.5%, with a return of approximately 4% on the share, which is a good level compared to many listed companies, which enhances the attractiveness of the stock to investors.

He added that these distributions are expected to attract more liquidity and increase activity during the year 2026, pointing out that the market since the beginning of this year has recorded its highest levels since 2008, with a noticeable increase in trading volumes.

Mahdi stressed that the arrival of most stocks, including blue-chip stocks, to record price levels reflects the strength of the market, and confirms that this positive performance is directly reflected on the Dubai Financial Market as a listed company and enhances its position as one of the most prominent financial markets in the region.

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