Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The UAE stock markets demonstrated resilience and steady growth in February, with the Abu Dhabi Securities Exchange (ADX) maintaining its strength and the Dubai Financial Market (DFM) extending its winning streak, according to monthly report of Kamco Invest.
“Investor sentiment remained positive, supported by strong earnings in the financial and real estate sectors, increased trading volumes, and a favourable economic outlook,” Kamco Invest said.
Despite some global market uncertainties, the UAE economy continues to show robust fundamentals, with projections indicating a GDP growth of 5% to 6% in 2025, driven largely by non-oil sectors such as technology, renewable energy, financial services, and infrastructure.
The Abu Dhabi Securities Exchange recorded a slight decline of 0.2% in February but remained up 1.5% year-to-date. The real estate sector was the standout performer, registering a 15.5% gain, making it the best-performing sector on the exchange. Notable stock gains included Hayah Insurance, which surged by 48.2%, Sudatel, which increased by 26.9%, and Al Wathba National Insurance, which climbed by 23.8%.
Trading volumes on ADX remained strong, with the total value traded increasing by 60.6% to Dh32.9 billion, reflecting continued investor interest in UAE equities.
ADNOC Gas topped the list of the most active stocks table in February with 3.7 billion traded shares followed by Abu Dhabi National Hotels. and Lulu Retail Holdings, which traded 678.1 million shares and 548.1 million shares, respectively. In terms of value traded, ADNOC Gas topped the table with Dh12.6 billion worth of shares changing hands during the month followed by Aldar. and International Holdings Company at Dh3.1 billion and Dh2.9 billion respectively.
“The UAE’s expected strong economic growth benefits from the UAE government’s continuing investment in its non-oil sectors and the expected overall economic growth of GCC region “ Kamco Invest said in its report
Dubai Financial Market
The DFM main index posted its ninth consecutive monthly gain, with the its general index rising 2.6% to 5,317.6 points. The index also posted year-to-date gain of 3%.
“Gains in the financial and real estate sectors, coupled with growing investor confidence in Dubai’s economic expansion, contributed to this upward trend,” Kamco Invest said.
According to monthly stock performance from Bloomberg, Emirates Islamic Bank topped the monthly gainers table with 25.7% jump in share price followed by Union Properties and Air Arabia with gains of 14.0% and 12.9%, respectively. Emirates Islamic Bank reported a 32.5% year-on-year net profit increase to Dh2.8 billion in 2024. On the decliner’s side, National International Holding topped the table recording a share price decline of 14.5% followed by Shuaa Capital and TAALEEM which recorded share price declines of 12.7% and 9.7%, respectively, during February, 2025.
Talabat topped the monthly volumes traded chart recording 699.2 million traded shares followed by Union Properties and Drake & Scull International which saw 664.7 million and 482.1 million of their shares change hands during the month, respectively.
On the monthly value traded chart, Emaar Properties topped the list with Dh4.1 billion worth of shares changing hands during the month, followed by Emaar Development and Dubai Islamic Bank which saw Dh2.8 billion and Dh1.2 billion value of their shares traded, respectively.
Dubai’s real estate market continued to strengthen, with residential sale prices rising by 20% and rental rates increasing by 19% in 2024, reflecting strong demand. The office market also demonstrated resilience, with a 17% rise in rents, driven by multinational corporations expanding their operations in the emirate.
The tourism sector further supported the market’s positive trajectory, with Dubai welcoming 18.7 million overnight visitors in 2024, representing a 9% year-on-year increase. Hotel occupancy rates remained strong at 78%, further boosting consumer and hospitality-related stocks.
Despite some fluctuations across the region, GCC markets displayed resilience, with an overall year-to-date gain of 2.6%. Bahrain emerged as the best-performing market in February, rising 4.3%, driven by real estate and materials sector growth. Kuwait’s market also performed well, gaining 4.1%, with its main Market Index leading at 4.7%.
Saudi Arabia, Qatar, and Oman experienced minor declines, primarily due to profit-taking in key sectors and volatility in oil prices. However, analysts remain optimistic about the region’s broader economic prospects, with the World Bank forecasting 3.4% growth for the GCC economies in 2025.
The UAE and GCC markets remain well-positioned for future growth, supported by strong government policies, economic diversification, and solid corporate performance. The UAE continues to attract global investors, and as non-oil sectors expand, market stability and growth are expected to persist.
