The stock exchange of the United Arab Emirates has reached a market capitalisation of $1 trillion for the first time, positioning it ahead of several emerging markets. This achievement is attributed to government initiatives aimed at attracting foreign investment and strong economic fundamentals in key cities.
In 2023, there has been increased global investor interest in IPOs within the UAE, with notable listings including Lulu Retail and Alef Education. Companies focused on green energy and artificial intelligence are also attracting significant international investment, leading to higher trading volumes and market participation.
Key contributors to this growth include companies associated with Sheikh Tahnoon bin Zayed Al Nahyan, the Deputy Ruler of Abu Dhabi and UAE's National Security Adviser. The International Holding Company (IHC), chaired by Sheikh Tahnoon, has a market capitalisation of nearly $250 billion, accounting for a quarter of the total value of UAE’s listed equities. This reflects the UAE's ambition to establish itself as a global financial hub.