Dubai’s equity market has seen a strong wave of activity since the start of the year, fueled by growing confidence from international investors and major institutions. Fresh data from the Dubai Financial Market (DFM) show that combined foreign and institutional purchases have reached AED 108.7 billion up to last Friday’s session.

Solid foreign inflows

Foreign (non-Arab) investors were particularly active, recording net purchases of AED 5.92 billion since January. Their total acquisitions stood at AED 47.41 billion, compared with AED 41.49 billion in sales. Market analysts point to Dubai’s robust economic fundamentals and attractive stock valuations as key drivers behind this trend.

Institutional demand strengthens

Institutional investors also played a pivotal role in sustaining market momentum. Their net buying reached AED 1.74 billion during the same period, with total purchases amounting to AED 61.28 billion, versus AED 59.54 billion in disposals. The steady institutional presence is seen as a sign of growing trust in the performance of Dubai’s listed companies.

Market index posts sharp gains

The impact of these inflows has been evident on the DFM Index, which advanced 18.75% since the start of the year, closing last week at 6,125.89 points. The rally was supported by gains across leading sectors:

• Banking jumped 25.46%

• Industry climbed 25.1%

• Real estate rose 17.5%

Positive outlook for 2025

With Dubai’s economy showing resilience and corporate earnings exceeding expectations in the first half of the year, analysts anticipate further inflows from abroad over the coming months. The combination of strong fundamentals and attractive opportunities continues to position Dubai as one of the region’s most compelling investment destinations.