How to Invest in Stock Market in UAE?

Disclaimer: The information on this page is for reference only and does not constitute investment advice. 

What is a Stock Market?

The stock market is a place where companies and investors buy or sell stocks or shares. Stocks are basically parts of the ownership of a publicly listed company. When you, as an investor, buy these shares, you own a small part of the company. If the company grows, the value of its shares increases. 

Investors can also earn dividends (a part of company profits). Additionally, you can sell the shares anytime on the stock exchange at market prices.

Who are the Main Players in the Stock Market?

There are three big characters —

1. Buyer – Wants to buy shares
2. Seller – Wants to sell shares (to make a profit, earn dividends, and so on)
3. Broker – A middleman who helps connect buyers and sellers

Stock Exchanges in the UAE

In the UAE, you can find three main stock exchanges —

1. Dubai Financial Market (DFM)

Established in 2000, it was initially government-owned. Later, it became a public joint-stock company in 2006. DFM only lists companies that follow Sharia principles. It has over 170 securities listed, including those from firms in the UAE, Kuwait, Bahrain, Oman, and Sudan.

Trading hours: Monday to Friday, 10 am — 3 pm

2. Abu Dhabi Securities Exchange (ADX)

Launched in 2000, the Abu Dhabi Securities Exchange is home to some of the UAE’s biggest local companies. With more than 73 securities currently listed, ADX is a key marketplace for investors looking to focus on the UAE economy.

Trading hours: Monday to Friday, 10 am — 3 pm

3. NASDAQ Dubai

Unlike ADX and DFM, NASDAQ Dubai has a more international outlook. It lists stocks, bonds, and REITs from markets such as North Africa, India, and Turkey. This makes it attractive for investors seeking regional diversification. The exchange has DFM holding at a 66% stake. At present, it has around 146 securities listed.

Trading hours: Monday to Friday, 10 am — 3 pm

Bonus: Investing in Global Stocks from UAE

As a UAE investor, you don’t have to limit yourself to just local exchanges. You can also invest in global markets like the US, Europe, or Asia.

Popular platforms for global stock investing in UAE include —

• Sarwa Trade
• Saxo Bank
• Interactive Brokers
• eToro

These platforms allow you to buy fractional shares (small parts of a share), making it affordable to invest in companies like Apple, Tesla, or Amazon.

How to Invest in UAE Stock Market Online?

Here’s a step-by-step guide for beginners to invest in UAE stock market —

1. Get an Investor Number (NIN)

To trade on the Dubai Financial Market (DFM) or Abu Dhabi Securities Exchange (ADX), you first need a National Investor Number (NIN). Think of NIN as your ID card for investing. Without it, you cannot buy or sell stocks.

How to Apply

• Apply online through the exchange’s website
• Alternatively, visit their customer service desk with your Emirates ID
• Once approved, you’ll get your NIN shortly

👉 With NIN in hand, you’re officially ready to invest in UAE-listed stocks.

2. Choose a Licensed Broker

You cannot directly buy stocks from the exchange. Rather, you need to connect to a broker. Think of them as your gateway to the stock market. They help you place buy/sell orders and manage your trades.

Types of Brokers in UAE

• Banks: e.g., Emirates NBD, ADCB
• Independent brokerage firms: Licensed by SCA

What to Compare Before Choosing a Broker

• Brokerage fees (commission per trade)
• Trading platform quality (mobile app, website)
• Research tools and support offered

Pick a broker that matches your budget and trading style.

3. Open a Trading Account

After selecting a broker, the next step is to open a trading account. This account will link your NIN with your bank account and broker’s platform.

Documents Required

• Emirates ID
• Passport copy
• Bank details
• Investor Number (NIN)

Once set up, you’ll have a login ID and password to access your trading dashboard.

4. Deposit Funds

You can transfer money from your bank account to your trading account. Most brokers in the UAE allow deposits via online transfer, cheque, or cash.

Tip: If you plan to invest in international stocks (e.g., US markets via Sarwa Trade), make sure your broker supports multi-currency accounts (AED & USD).

5. Start Trading

With funds ready, you can place your first buy or sell order through the broker’s app or web platform.

Types of Stocks You Can Trade

• UAE companies (listed on DFM, ADX, NASDAQ Dubai)
• International stocks (through global brokers or apps)

Order Types Available

• Market order — buy/sell immediately at current price
• Limit order — set a price at which you want to buy/sell
• Stop order — executes only when a certain price is reached

Why Invest in Stock Market Dubai?

Here are the main reasons why investors are attracted to invest in the UAE stock market —

Strong Economic Growth

The UAE economy is supported not just by oil but also by trade, finance, and tourism. With global events like Expo 2020 and Vision 2030 projects, more companies are expanding. This gives investors growth opportunities.

High Returns Potential

If you put money in a savings account, it grows slowly. But if you buy stocks of good companies, your money can grow faster over many years. Some companies also give you extra money in the form of dividends as a reward.

Diversification

You can put money in UAE companies like Emirates NBD, Etisalat, ADNOC, and more. You can also invest in big global companies like Apple, Tesla, or Amazon. This way, if one company doesn’t do well, your money in others is still safe.

Regulated and Secure

The UAE stock market is looked after by a special group called the Securities and Commodities Authority (SCA). They make sure rules are followed, trading is fair, and people are protected from cheating or fraud.

Things You Should Know to Invest in Stock Market Dubai

Before you buy a stock, you should do some homework. Think of it like checking reviews before buying a new phone. 

Here’s what you need to keep in mind —

1. Market Risk: Stock prices rise and fall daily. Thus, invest only the amount of money you can afford to keep for the long term. A highly leveraged firm may offer high returns but comes with higher risks.
2. Diversify Portfolio: Don’t put all your money in one stock or one industry. It’s always better to spread it across banking, real estate, telecom, energy, and even foreign stocks.
3. Check Your Investment Goals: Are you investing for retirement, wealth building, or quick profits? Your goal will decide whether you should invest in blue-chip stocks, growth stocks, or ETFs.
4. Returns: Analyse earnings growth, revenue stability, and profit margins. For example, First Abu Dhabi Bank and Emaar Properties have shown consistent earnings expansion in recent years.
5. Tax Benefits: The UAE offers zero capital gains tax and zero dividend tax. This makes stock investing more profitable compared to many other countries. However, if you need to declare income in another country, you may have to check tax implications.
6. Industry Trends: Regulatory shifts or technology disruptions can reshape industries. For instance, renewable energy firms in the UAE may offer faster growth potential compared to traditional utilities.
7. Risk Tolerance: Aggressive investors may prefer volatile, high-growth stocks, while conservative ones might lean toward stable banks or dividend-paying firms. Understand how much risk you can tolerate.

Why is Long-Term Investing Better?

Many people go for market timing. This happens when you try to guess when to buy and when to sell. However, the truth is that nobody can always predict the market. This is especially the case for beginners.

Instead, it’s smarter to stay invested for a long time. Here’s why —

• Compounding: If you keep reinvesting profits and dividends, your money grows faster. Think of it like your profits also earning profits on them.
• Ride Out Volatility: Prices can go up and down daily. However, in stable markets like the UAE, most stocks have shown growth over the years.
• Lower Costs: Trading less means fewer fees to brokers.
• UAE Growth Story: The UAE is growing in real estate, tourism, banking, and clean energy. Long-term investors can benefit from this growth.

Best UAE Stocks to Watch in 2025

Here are some of the most popular choices among investors —