Dubai’s stock market is experiencing a marked uptick in foreign investor activity. Between the beginning of September and Friday of last week (19 trading sessions), non‑Arab foreign investors made net purchases of AED 700.98 million in Dubai Financial Market shares, with gross purchases totaling AED 5.21 billion compared to sales of roughly AED 4.51 billion.
This rising foreign engagement adds to the overall foreign trading, which recorded a net buy of AED 1.22 billion, based on total transactions of AED 6.52 billion in purchases vs. AED 5.29 billion in sales.
Other Investor Groups
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Arab investors also bought, though on a smaller scale: net investment of about AED 81.8 million, from purchases of AED 392.15 million and sales of AED 310.32 million.
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Gulf Cooperation Council (GCC) citizens showed even stronger net buying: roughly AED 447.06 million, with purchases near AED 923.95 million and sales around AED 476.89 million.
What’s Driving the Momentum?
Some of the key triggers behind this foreign investor interest include:
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Attractive valuations in UAE equities — Companies listed in Dubai are showing strong financials, which is drawing attention from international investors looking for solid returns.
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Strength and credibility of Dubai’s economy — The emirate continues to be seen as a stable, reliable market in the region, which helps build investor trust.
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Upcoming IPOs and listings — One example is the planned IPO of ALEC Holding, an engineering and construction firm. The prospect of entering new, publicly listed opportunities is increasing the market’s appeal.
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Government policies and strategic vision — Supportive regulatory environment, consistent economic policy, and targeted efforts to enhance foreign participation are reinforcing confidence.
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Real estate recovery and related sectors — With sectors like real estate showing signs of recovery, investors are perceiving more diversified opportunities beyond traditional finance or energy.
Implications for the Market
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Increased liquidity: More foreign buying tends to improve market liquidity, which is good for both companies and smaller investors.
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Better pricing power: Higher foreign demand could lead to tighter spreads and more efficient pricing of stocks.
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Stronger case for future IPOs: If the ALEC Holding IPO is successful, it could encourage more companies to list, which broadens investment options.
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Greater integration with global capital flows: As foreign participation grows, Dubai becomes more intertwined with global markets, making it more sensitive to international trends but also more attractive to global funds.
Outlook
The prevailing sentiment is optimistic. Observers expect that this momentum in foreign investment will continue, especially with more IPOs on the horizon, stable economic fundamentals, and policies that foster openness and transparency. If these trends hold, Dubai’s stock market is likely to see further inflows, increased diversification of investors, and possibly new records in trading activity.
