Dubai Stock Exchange Records Exceptional Q1 Trading Amidst Increased Investor Engagement
In Q1 of 2025, Dubai's Financial Market (DFM) shattered records with its strongest performance in over a decade, basking in the glow of soaring trading activity and booming investor participation. The Average Daily Trading Value (ADTV) reached an astounding AED 663 million - the highest in over ten years - marking a colossal 67% year-on-year increase. Total traded value surged to AED 41 billion, smashing the previous year's Q1 figure of AED 25.5 billion by a mammoth 61%.
Two crucial factors fueled this remarkable surge: investors' unwavering confidence and robust capital inflows. Despite the global turbulence, DFM maintained its magnetic allure, driving market activity like a well-oiled machine. The exchange reported a hefty AED 186.5 million in consolidated revenue for the quarter, a significant leap from AED 148.1 million in the same period last year. Net profit before tax swelled to AED 134.9 million, contrasting starkly with the AED 95.6 million reported in Q1 2024. Operating income stood at AED 86 million, with investment returns and other income contributing an impressive AED 100.5 million.
The market's newfound liquidity was demonstrated by a staggering 33% increase in average daily trades, reaching 13,400. The charm of Dubai couldn't be resisted, as even 19,366 novice investors flocked to join in the fun. It's worth noting that a whopping 86% of these newbies hailed from foreign lands, with foreign investors collectively contributing 53% of the total trading value. Institutional investors played their part too, contributing a hefty 72% of the total trading value - a rise from 65% in the previous year.
Helal Saeed Al Marri, the illustrious Chairman of DFM, couldn't help but bask in the market's radiant glory. CEO Hamed Ali chimed in, celebrating the increased participation from both institutional and international investors, which he deemed a testament to the long-term confidence in the market.
Despite a marginal 1% dip in total market capitalization to AED 897 billion at the end of March 2025, compared to year-end 2024, investor momentum and liquidity continue to prop up Dubai's status on the global financial stage. The GCC region's economic growth forecast – set to skyrocket from 1.7% in 2024 to a whopping 3.5% in 2025 – breeds a fertile ground for the financial sector's expansion.
All in all, Dubai's Financial Market (DFM) defied global headwinds to scale new heights in Q1 2025, fueled by escalating trading activity, flourishing investor confidence, and lofty capital inflows. Securing its position among hubs like Singapore, Hong Kong, and Switzerland, Dubai continues to redefine the landscape of global finance.
Sources: Emirates News Agency, Mordor Intelligence, S&P Global, Bloomberg, Reuters. [1] GCC Economic Outlook 2025. [2] UAE Banking Sector Q1 Performance 2025. [3] Global Financial Centre Index 2024-2025. [4] DFM Q1 2025 Financial Results. [5] Enrichment Data.
The surge in Dubai's Financial Market (DFM) in Q1 of 2025 can be attributed to robust capital inflows and investor confidence, as evidenced by a 67% year-on-year increase in Average Daily Trading Value and a 61% increase in total traded value. (finance, investing, business)
foreign investors collectively contributing 53% of the total trading value, Dubai's Financial Market (DFM) demonstrated its attractiveness to international investors, playing a significant role in its rapid growth. (trade, investment)
