A. SREENIVASA REDDY (ABU DHABI)
Stocks listed on UAE bourses have now surpassed a combined valuation of $1 trillion, according to a Bloomberg analysis.
The market capitalisation of all listed companies on the Abu Dhabi Securities Exchange (ADX) at the close of trading on Friday stood at Dh2.942 trillion, equivalent to approximately $801.56 billion at today’s exchange rate of Dh3.673 per dollar. Similarly, the market cap of all companies listed on the Dubai Financial Market (DFM) amounted to Dh757 billion, translating to nearly $206 billion.
The combined market capitalisation of the UAE stock exchanges, therefore, exceeded the $1 trillion milestone at the end of trading on Friday, in what has been a historic week for the country’s financial markets.
"It's a very impressive achievement to surpass the $1 trillion mark and really highlights the UAE's importance as a global financial hub,” Stuart Yeomans, CEO of Farringdon Capital, said.
"This achievement is impressive —especially considering the UAE’s relatively smaller size," Yeomans added.
Several factors have fuelled this achievement. Among them is the recent rally in the share price of the International Holding Company (IHC), the most valuable company listed on ADX. The IHC’s stock surged following the announcement of a Dh5 billion share buyback programme, which significantly boosted the company’s market value last week.
Additionally, Lulu Retail, a leading retail giant in the Gulf region, made its debut on ADX on Thursday. The listing, which raised over Dh6.32 billion, added Dh21 billion to the UAE’s stock market capitalisation.
Although the stock made a modest start, its addition has bolstered the UAE’s financial landscape.
Meanwhile, Talabat, a prominent food delivery app, is preparing to commence subscriptions for its IPO on November 19. Market analysts predict that Talabat could become more valuable than its parent company, Delivery Hero, which is listed in Germany.
With a combined valuation now exceeding $1 trillion, the UAE stock market has outpaced the bourses of Milan and Madrid. However, it still trails behind Saudi Arabia’s stock market, valued at nearly $3 trillion.
According to Bloomberg, this milestone underscores the UAE’s strategy to establish itself as a global financial hub.