UAE-listed stocks surpass $1 trillion market value milestone

UAE Stock Market Hits $1 Trillion Milestone, Driven by Key Abu Dhabi Firms and IPO Surge

A flood of new listings and a boom in businesses connected to Abu Dhabi’s ruling family have caused the total value of equities listed in the United Arab Emirates (UAE) to reach $1 trillion for the first time. This accomplishment puts the stock market of the United Arab Emirates, which comprises the exchanges in Dubai and Abu Dhabi, ahead of major financial centers like Milan and Madrid. The UAE is currently one of the biggest rising markets, behind only heavyweights like China and India, but it is still smaller than Saudi Arabia’s $3 trillion market, according to Bloomberg.

Key Role of Sheikh Tahnoon bin Zayed Al Nahyan

A significant portion of the UAE’s market value, over one-third, comes from companies associated with Sheikh Tahnoon bin Zayed Al Nahyan, one of Abu Dhabi’s deputy rulers, national security adviser, and brother to the UAE president. In a variety of industries, Sheikh Tahnoon has amassed a remarkable $1.5 trillion economic empire.

The most notable of his businesses is International Holding Company (IHC), which is now the biggest publicly traded company in the United Arab Emirates. IHC, a tiny fish farming company at first, has experienced exponential growth, and in recent years, its market capitalization has increased by more than 43,000% to around $250 billion, or 25% of the UAE’s total stock market value.

. Locals own 88% of IHC, which plays a central role in diversifying the UAE economy beyond oil, with investments ranging from Elon Musk’s SpaceX and Rihanna’s lingerie brand to major local firms like Aldar Properties PJSC.

Sheikh Tahnoon also chairs First Abu Dhabi Bank PJSC, the UAE’s largest lender, which along with IHC constitutes over half the weighting on Abu Dhabi’s FTSE ADX General Index. The combined influence of these companies has been pivotal in achieving the $1 trillion milestone.

Diversification Through IPOs and Global Investments

The UAE’s stock market growth has been further bolstered by a flurry of initial public offerings (IPOs). Since 2021, the country has been at the forefront of a Gulf-wide push for listings, with governments leveraging IPOs to raise capital and diversify their oil-reliant economies. Notable IPOs include those linked to Sheikh Tahnoon’s wealth fund, such as Lulu International Holdings, which completed the UAE’s largest listing of the year.

With possible offerings from well-known companies like Etihad Airways of Abu Dhabi, Talabat (Delivery Hero SE’s Middle Eastern division), and IT services company Alpha Data, further initial public offerings (IPOs) are anticipated to maintain the trend. These listings are part of a larger effort to establish Abu Dhabi as a major international financial center that will draw in foreign capital while enticing citizens to keep their wealth in the nation.

Market Performance and Regional Context

The MSCI Emerging Markets Index includes the UAE stock market, which makes up 1.2% of its benchmark. Although IHC is not represented in the index directly, its subsidiaries including First Abu Dhabi Bank are.

The Dubai Financial Market General Index has performed exceptionally well, trading near its highest levels since 2014 and leading regional benchmarks with a 17% gain in 2024. Abu Dhabi stocks, however, have faced a slight 1.4% decline this year.

This remarkable growth comes amid regional tensions but underscores the UAE’s economic and population expansion. With the $1 trillion milestone achieved, the UAE is cementing its position as a leading financial market in the Middle East, reflecting the vision and influence of its leadership.