Trading Popular UAE Stocks: What You Need to Know

The UAE stands out as one of the wealthiest countries in the Middle East, boasting a diverse array of businesses that provide both resident and non-resident investors with a plethora of trading opportunities.

For traders and investors alike, it's essential to acquaint themselves with local UAE companies, which can offer portfolio diversification, trading opportunities, and exposure to potentially lucrative financial markets.

Here's what you need to know about trading UAE local stocks:

TL;DR

• The UAE is one of MENA’s strongest economies, projected to expand further in the future.
• For traders seeking to potentially benefit from the UAE economy, trading CFDs on local UAE shares can be suitable.
• Some of the most popular UAE shares include Dubai Electricity and Water, Emaar Properties, Emirates NBD Bank, Dubai Islamic Bank, and Salik Company, among others.
• Local UAE share CFDs allow traders to trade rising and falling share prices with leverage.
• Leveraged trading can amplify gains but also result in significant losses.

What Is the UAE?

The United Arab Emirates, commonly abbreviated as the UAE or the Emirates, is a Middle Eastern country situated in West Asia. It shares borders with Saudi Arabia, Oman, the Arabian Gulf, Iran, and Qatar.

The UAE comprises seven emirates (territories ruled by monarchs), and these are as follows:

• Abu Dhabi
• Dubai
• Sharjah
• Ajman
• Umm Al Quwain
• Ras Al Khaimah
• Fujairah

As of 2024, the UAE's population stands at 9,591,853, reflecting a 0.79% increase from the previous year.

The UAE’s Economic Landscape

Before delving into UAE CFD stock trading, it may be beneficial to gain an overview of the country's economic landscape to determine if investing in its businesses aligns with your goals.

The State of the UAE Economy

As of 2024, the UAE ranks as the fourth-largest economy by GDP in the Middle East and North Africa (MENA) region. Renowned for its prosperous business environment, innovative infrastructure, high-end airlines, telecommunications, and fast-paced markets, the country also excels in healthcare, education, and sustainability.

The UAE’s Economic Future

Aligned with its vision and national action plan, "We Are the Emirates 2031," the country aims to enhance its sectors in the following manner:

• Tourism: Adding 450 billion AED to the GDP.
• Non-oil exportation: Increasing to 800 billion AED.
• GDP: Raising to 3 trillion AED.
• Foreign UAE trade: Elevating to 4 trillion AED.
• Legislation development: Achieving top rank for new economic sectors.

It will be interesting to see if the country’s economy will adhere to its policymakers' goals.

Gaining Exposure to the UAE Economy through Share CFDs

One avenue to gain exposure to the UAE's economy is by trading Contracts for Difference (CFDs) on shares of popular local UAE companies.

Trading CFDs involves opening buy or sell positions on derivative agreements between two parties (a buyer and a seller, or a trader and a CFD provider) to transact the difference in the share's price from the contract's opening to its closure.

CFDs are leveraged instruments, meaning gains and losses are magnified. Importantly, CFDs don't confer ownership of the underlying asset but enable trading on both rising and falling asset prices without ownership.

Plus500’s Local UAE Share CFDs

If trading local UAE stocks via CFDs appeals to you, here are the relevant share CFDs offered on the Plus500 platform:

Dubai Electricity Water Authority (DEWA.AE)

• Founded: 1992
• Type: A government-owned utilities company.
• Industry: Electricity, Water and District Cooling.

Emirates NBD (EMIRATESNBD.AE)

• Founded: 1963
• Type: A public company
• Industry: Financials

Emaar Properties (EMAAR.AE)

• Founded: 1997
• Type: A public company
• Industry: Real estate

Dubai Islamic Bank (DIB.AE)

• Founded: 1975
• Type: A public company
• Industry: Financials

Salik Company (SALIK.AE)

• Founded: 2022
• Type: A public company
• Industry: Industrials

Air Arabia (AIRARABIA.AE)

• Founded: 2003
• Type: A public company
• Industry: Aerospace

Dubai Financial Market (DFM.AE)

• Founded: 2000
• Type: A stock exchange
• Industry: Financials

Emaar Development (EMAARDEV.AE)

• Founded: 1997
• Type: A public company
• Industry: Real estate

Emirates NBD (EMIRATESNBD.AE)

• Founded: 2005
• Type: A public company
• Industry: Telecommunications

TECOM Group (TECOM.AE)

• Founded: 2005
• Type: A public company
• Industry: Real estate

Dubai Investments (DIC.AE)

• Founded: 1995
• Type: A sovereign wealth fund
• Industry: Financials

National Central Cooling (TABREED.AE)

• Founded: 1998
• Type: A public company
• Industry: Water & Related Utilities

Al Ansari Financial Services (ALANSARI.AE)

• Founded: 1966
• Type: A private company
• Industry: Financials

Gulf Navigation Holding (GULFNAV.AE)

• Founded: 2003
• Type: A public company
• Industry: Transportation

Dubai Taxi Company (DTC.AE)

• Founded: 1994
• Type: A public company
• Industry: Transportation

Ajman Bank (AJMANBANK.AE)

• Founded: 2008
• Type: A public company
• Industry: Financials

GFH Financial Group B.S.C (GFH.AE)

• Founded: 1999
• Type: A public company
• Industry: Financials

Aramex (ARMX.AE)

• Founded: 1982
• Type: A public company
• Industry: Courier and logistics

Taaleem Holdings (TAALEE.AE)

• Founded: 2003
• Type: A public company
• Industry: Education and training services

Deyaar Development (DEYAAR.AE)

• Founded: 2001
• Type: A public company
• Industry: Real estate

Amanat Holdings (AMANAT.AE)

• Founded: 2014
• Type: A public company
• Industry: Financials

Union Properties (UPP.AE)

• Founded: 1987
• Type: A public company
• Industry: Real estate

Amlak Finance (AMLAK.AE)

• Founded: 2000
• Type: A public company
• Industry: Financials

Emirates Reem Investments (ERC.AE)

• Founded: 1980
• Type: A public company
• Industry: Beverages- Non-Alcoholic

If these companies’ shares pique your interest, you can start trading local UAE share CFDs with Plus500.

Conclusion

The UAE presents a robust economic environment rich in speculative trading opportunities, particularly for those looking to diversify their portfolios through local companies.

By trading CFDs on local UAE shares with Plus500, traders can access various stock sectors, from utilities and finance to real estate and telecommunications, without the need for asset ownership.

As the UAE continues to evolve and strive toward ambitious economic goals, traders can potentially benefit from the growth and diversification offered by the country's dynamic market.

FAQs:

Which are the best stocks in the UAE?

There’s no black or white answer to this question as the “best stocks” to trade depends on your risk tolerance and individual needs.

How can I buy UAE stocks?

You can buy UAE stocks through a stock exchange or open buy positions on Share CFDs contracts with a provider like Plus500.

Is there any stock market in the UAE?

Yes, there are multiple stock markets in the UAE including: the Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM) and Nasdaq Dubai.

Is stock trading allowed in the UAE?

Yes, stock trading is allowed in the UAE.