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Dubai stock market continues to see strong participation of foreign investors, says CEO
DFM and Nasdaq Dubai chief says international investors now account for majority of trading liquidity, as exchange prepares further sukuk issuances
- PUBLISHED: Thu 2 Jul 2026, 3:48 PM
Dubai’s stock market, which crossed Dh1 trillion in market capitalisation up from Dh250 billion five years ago, conitnued to attract internattional investors despite regional issues, said Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
Speaking at a briefing during the listing of the inaugural Sovereign Retail T-Sukuk Programme by the Ministry of Finance, Ali said the market’s expansion has been underpinned by growing international participation.
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He added that more than 200 nationalities traded on the exchange last year, and this year marks the first period in which international liquidity has overtaken local liquidity, accounting for 54 per cent of total trading activity. Around 71 per cent of that international flow comes from institutional investors, which Ali described as “smart money” entering the market.
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“A number of things (drove this) – one, quality assets coming into the market, second is index inclusion and making sure that you are credibly growing the market, because that is what gives you that sustainability,” he said.
The exchange reported a roughly 50 per cent rise in liquidity in the first quarter of 2026, with the split between international and local trading activity remaining broadly even.
Ali attributed part of the surge to regional volatility, noting that price adjustments – whether driven by geopolitical developments or higher oil prices – tend to create buying opportunities that draw in investors.
About 84 per cent of investors on the exchange are now based outside the UAE, he said. In March alone, the number of investors was 30 per cent higher than in the same month last year.
Focus on quality
On the initial public offering (IPO) pipeline, Ali said the exchange’s priority is not the number of listings but the quality of market capitalisation being added. Last year saw three offerings, including an initial minority offering (FMO) that moves a company closer to potential index inclusion, followed by two full listings.
While the start of this year has been strong, Ali said the exchange remains optimistic about the strength of its listings pipeline, adding that recent regional events could, if anything, increase the likelihood of pending transactions materialising.
On the fixed income side, he said, the exchange attracted 33 listings worth about $13.8 billion, which Ali said reflected continued momentum.
“We’re not seeing any impact in terms of any deviation from the focus that we’ve had. Our focus is on growing and deepening the market, expanding the investor base, (and) coming up with new initiatives,” he said.
