UAE stock market hits $1 trillion milestone

Stocks listed in the UAE have surpassed $1 trillion in market value for the first time, driven by a surge in companies linked to an Abu Dhabi royal and a wave of local IPOs.

Firms tied to Abu Dhabi’s deputy ruler and national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, who oversees a $1.5 trillion empire, make up over a third of this value.

The UAE’s combined market, spanning the Abu Dhabi Securities Exchange and Dubai Financial Market, now outpaces those in Milan and Madrid. While still smaller than Saudi Arabia’s nearly $3 trillion bourse, it ranks among the largest in emerging markets, alongside giants like India and China.

Sheikh Tahnoon chairs International Holding Co. (IHC), the UAE’s largest public company. IHC has soared over 43,000% in recent years, boasting a market cap of nearly $250 billion—about a quarter of the UAE exchanges' total value.

Locals own 88% of IHC, which has invested in diverse sectors, including SpaceX, Aldar Properties, and Rihanna's lingerie brand.

Sheikh Tahnoon also chairs First Abu Dhabi Bank, the UAE’s largest lender. Together, IHC and the bank account for over half the weight of the FTSE ADX General Index.

The UAE is part of the MSCI Emerging Markets Index, contributing 1.2% of the benchmark. While IHC is excluded, key players like First Abu Dhabi Bank, Aldar Properties, and Multiply Group are included.

The market’s growth has been fueled by a flurry of IPOs since 2021, as UAE and Saudi Arabian governments push to diversify their economies. A notable example is Lulu International Holdings, which staged a $1.72 billion IPO in Abu Dhabi. Upcoming listings include Etihad Airways, Talabat, and Alpha Data.

Despite regional tensions, Dubai’s stock market is performing strongly, with its general index near 2014 highs and up 17% in 2024. In contrast, Abu Dhabi stocks have dipped 1.4% this year.

The UAE’s robust stock market growth reflects the country’s economic diversification efforts and its rising profile in global finance.