Dubai is the only city in the Middle East that serves as a financial center for regional and international businesses. The Dubai stock exchange is one of the areas where regional and international companies can raise funds by listing themselves on the Dubai stock market.
Dubai is home to 2 stock exchanges, out of the 3 in the United Arab Emirates. The Abu Dhabi Securities Exchange (ADX) is located in the UAE capital, while the Dubai Financial Market and Nasdaq are located in Dubai.
DFM, or Dubai Financial Market, is a local firm with a majority of its shares owned by the Dubai government, while Nasdaq is an international securities exchange company that is a part of Nasdaq International.
What is the best stock market in Dubai?
Dubai has only two stock exchanges. Both DFM and Nasdaq provide similar services to investors and businesses.
A company can choose to list on one of the stock exchanges; initially, they should reach out to the public via an IPO (Initial Public Offering), and eventually, those shares can trade on the secondary market.
While we talk about the best stock market in Dubai today, it depends on you what type of company and the investor you are.
If you’re looking to list your company in order to connect with local and regional investors, DFM may be the ideal option. If you wish to list your business for trade in order to attract international investment, the Nasdaq is a suitable option.
From an investor standpoint, where do you wish to invest in local, regional, or international companies?.
To invest in a global company, go with Nasdaq, but if you want to invest in a regional duel listing firm, DFM can be the best choice, but Nasdaq also provides similar services.
Both platforms function as secondary markets, allowing investors to trade foreign companies’ shares, government bonds, Sukuk, and mutual funds, among others.
Who regulates the stock market in Dubai?
There are different regulator authorities. The Security Commodity Authority (SCA) regulates the DFM, and the Dubai Financial Services Authority (DFSA) does Nasdaq.
Both regulator authorities have the power of enforcing the rules and regulations to the listed companies and the investors. SCA and DFSA are responsible to protect market participants include investors, listed companies (issuers), brokers, and custodians as well.
Shari’a-compliant investment opportunities
As a Muslim country, both trading platforms comply with the Shari principles. As the growing demand for ethical investments by the investor in the Islamic world and beyond both companies have the index to identify the performance of Shari’a-compliant companies.
Both investing platforms have listed the UAE’s largest brokerage firm to provide brokerage services to investors.
There are no differences between the broker’s companies because they are both listed on DFM and Nasdaq.
If you wish to invest in the Dubai stock market, you should first determine the type of investment you wish to make. If you’re looking to invest in a multinational corporation, I prefer Nasdaq Dubai; however, if you’re looking to invest in regional or domestic companies, DFM is the better option.
Another critical measure for investors to consider when choosing a stock exchange is whether the exchange already has listed the companies in which they wish to invest.
You can utilize both platforms, but management is the most important issue, therefore I recommend you choose one after determining whether the firm can match your requirements.