UAE markets shine as a unique success story

UAE markets shine as a unique success story 

 

UAE markets shine as a unique success story told through numbers and confidence

Amidst the influx of global capital and the boom in real estate demand, the UAE reaffirms its position as a center of economic stability and an investment magnet in a world of volatility.

In a global economic landscape marked by geopolitical tensions and periodic downturns, the UAE markets shine as a unique success story told through numbers and confidence. The UAE's stock markets have reached a market capitalization of $1.125 trillion, outperforming established international exchanges such as Hong Kong, Milan, and Madrid.

The positive performance this year was not merely a numerical increase; it is a clear expression of the confidence of global capital in an economy that has proven its maturity and resilience, even in the most difficult circumstances.

The Abu Dhabi and Dubai stock exchanges outperform Wall Street and Tokyo.

The Dubai Financial Market (DFM) index has risen 17 percent since the beginning of the year, while the Abu Dhabi Financial Market (ADFX) index has risen 8 percent, achieving its best performance in three years. This superiority did not come out of nowhere. Rather, it is based on solid economic fundamentals, flexible policies, and strategic government initiatives, which have made the UAE markets an attractive environment for local and international investors.

According to Mohammed Ali Yassin, CEO of Mazaya Al Ghaf, during an interview with Lubna ," this boom is not just the result of temporary price movements, but a true global "vote of confidence." "Markets are rising because investors are investing their money, and this is the highest form of confidence," Yassin asserted, noting that the UAE has proven its resilience despite fluctuations and regional wars.

UAE Real Estate: Returns Outperforming New York and Paris

In addition to financial markets, the UAE real estate sector continues to record impressive figures in demand and returns. Real estate returns in the UAE today outperform those recorded in major global cities such as London, Paris, New York, and Hong Kong, according to independent international sources.

This demand was not the result of chaotic speculation, but rather reflects an organic growth in demand driven by the trifecta of stability: financial, security, and social. Analysis suggests that the strategic choice of the UAE as an investment and residential destination by thousands of new investors and residents enhances the sustainability of this growth.

Yassin explains, "The UAE is hitting all the right buttons: a safe environment, a flexible economy, and a high quality of life. This is what the world is looking for today." He adds that demand is diversified between housing and investment, making the market more balanced.

A Realistic Outlook and Calculated Optimism

Despite the significant increases, Yassin urges careful selection of opportunities, especially since some stocks have jumped 100 percent without clear fundamental catalysts. However, he points out that many leading stocks are still trading at attractive levels compared to developed markets:

P/E ratios for some banks and large companies remain at 12 to 14 times, compared to 25 to 30 times in the US.

Dividend yields exceed 5% in vital sectors, making the UAE  market more attractive to investors seeking stable income.

The Future? Brighter

Current indicators are only the beginning of further momentum, especially with:

Continued inflow of foreign investment*

Improved global valuations of the UAE economy*

Strengthening the UAE's position as a global financial hub* between East and West.

Yassin believes that markets will continue to rise, supported by fundamentals, while maintaining a balance between growth and inclusion.

The UAE in Leadership

Amid a world suffering from uncertainty, the UAE offers a stable and robust economic model. Its financial markets are growing confidently, and its real estate sector attracts investors with high returns. Meanwhile, the government is moving forward to enhance market infrastructure and promote transparency.

Money is not just about profit, but also about security and sustainability, and the UAE today offers all three.