Dubai’s achievements in capital markets show leadership's vision

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and Chairman of the Dubai Securities and Exchange Higher Committee, chaired a meeting of the Committee to review its significant accomplishments in 2024 and strategic priorities aimed at reinforcing Dubai’s position as a dynamic capital market and global financial centre.

Sheikh Maktoum said, "We remain steadfast in our efforts to realise the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to establish Dubai as the epicentre of global finance and secure its position among the world's top four financial hubs, in alignment with the Dubai Economic Agenda D33.”

He commended the Committee’s sustained efforts to implement innovative approaches to keep pace with the latest developments and meet the needs of local and international investors.
Sheikh Maktoum said, "Dubai’s sustained achievements in the capital markets sector stand as testament to its position as a leader in financial innovation and global investment. These milestones reflect the leadership’s unwavering commitment to fostering growth and creating a dynamic financial ecosystem that offers diverse opportunities and boosts investor confidence, while driving sustainable economic growth.”

Sheikh Maktoum reviewed the accomplishments of the Dubai Financial Market (DFM), highlighting three significant IPOs this year, including Parkin, Spinneys and Talabat, the UAE’s largest private sector IPO. These achievements underscore Dubai’s appeal as a premier market for public listings. Since the establishment of the Higher Committee, the DFM has hosted a total of 10 listings, raising over Dhs43 billion and generating demand exceeding Dhs1.2 trillion.

For the second consecutive year, the DFM General Index outperformed all regional indices, increasing by 19 per cent, reflecting the market’s sustained growth trajectory. DFM’s market capitalisation grew by over 100 per cent from Dhs394 billion in 2022 to Dhs801 billion early December 2024.

International investors accounted for 47 per cent of DFM’s trading activity, with the market attracting over 132,000 new investors in 2024, 85 per cent of them foreign investors. Notably, 35 per cent of new international investors came from the Asia Pacific region.

Nasdaq Dubai emerged as the leading global venue for Sukuk listings in terms of value, and first regionally in debt instrument listings, with 51 listings of sukuk and bonds, and a total value of Dhs360 billion in listed sukuk, while the aggregate value of fixed income securities stood at Dhs528 billion. About 45 per cent of issuers hailed from outside the UAE, including sovereign issuance from China, Hong Kong, Indonesia, Turkey, the Philippines, and the Maldives.

During the meeting, Sheikh Maktoum was also briefed on the ongoing efforts of the Virtual Assets Regulatory Authority (VARA) to solidify Dubai’s leadership in the virtual assets sector. VARA continues to focus its efforts on enhancing its infrastructure and extending the reach and resilience of the virtual asset ecosystem, while committing to offering a safe, innovative space for service providers and users alike.

Since its inception, the Dubai Securities and Exchange Higher Committee has played a pivotal role in reinforcing Dubai’s position as a global capital market and financial hub. Its efforts align with the emirate’s broader economic vision to attract global investments, foster innovation, and enable sustainable growth across all sectors of the financial ecosystem.

The Committee’s key accomplishments include establishing the Financial Markets Law Enforcement Committee, and the Virtual Assets Regulatory Authority, a specialised court for the resolution of securities-related disputes, apart from legislation and incentives to support local markets and listed firms.

The Committee also launched several projects including the xCube market maker and xCube trading app, green bonds and sukuk valued at $27 billion, a pilot for carbon credit trading and the IPO Accelerator programme.

In October, an economic report revealed that Dubai Financial Market's (DFM) General Index recorded double-digit gains of 10.9 per cent, the biggest in the Gulf Cooperation Council (GCC) region since the beginning of 2024.

The report, published by Kamco Invest, said that the DFM General Index recorded a 4.1 per cent increase in September, its fourth consecutive monthly gain and the largest monthly gain among the GCC markets in September-2024, to close at 4,503.48 points.

The overall index growth was broad-based although growth in the top weighted indices such as the Financial Index (+3.6 per cent) and the Real Estate (+3.1 per cent) drove the overall index performance during September-2024.

The Communications Services index reported an 11.1 per cent jump, the biggest increase during September-2024, followed by the Consumer Staples and the Utilities indices which recorded gains of 5.7 and 5.2 per cent during the month, respectively.

The report showed that the FTSE ADX General Index recorded a 1.5 per cent increase in September-2024 bouncing back from its 0.6 per cent dip in August-2024 to close the month at 9,425.49 points.

The report stated that GCC equity markets mostly closed with monthly gains during September-2024 taking cues from the rally in global financial markets that was seen during the second half of the month.

MSCI GCC index witnessed a gain of 0.9 percent during the month reflecting positive performance in five out of seven exchanges in the region.

WAM