For expat investors who know US markets well, stocks in the UAE can feel unfamiliar: two main exchanges, an investor number to obtain before the first trade, a Monday-to-Friday week and indices shaped by a handful of sectors. This guide explains how the local market works, from the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) to trading hours, dividends and the risks that are specific to the UAE.
It is written for high-net-worth expat and GCC investors who live in the UAE and are considering stock investment in the UAE alongside their global holdings. It describes how the market works; it does not recommend any company or sector.
The Dubai Financial Market and the Abu Dhabi Securities Exchange are the UAE’s two main venues for trading shares in local companies. Both are supervised by the Capital Market Authority (CMA), which replaced the Securities and Commodities Authority as the federal securities regulator on 1 January 2026. A third exchange, Nasdaq Dubai, operates in the Dubai International Financial Centre (DIFC) and is regulated by the Dubai Financial Services Authority (DFSA). Our comparison of DFM vs ADX vs Nasdaq Dubai explains how the three differ.
Each exchange has a headline index. The DFM General Index is a free-float, market-capitalisation-weighted index of DFM-listed shares, and the FTSE ADX General Index (FADGI) is the main benchmark for Abu Dhabi. In indices weighted by market capitalisation, the largest companies have the greatest influence on daily moves.
Shares are not the only listed products. Both exchanges also list exchange-traded funds (ETFs), and ADX trades bonds as well. Our guide to ETFs explains how these funds work for UAE investors. Because different companies list on each exchange, investors who want to invest in UAE stocks across both markets need access to each.
Before you can trade shares in the UAE, you need an investor number that identifies you to the exchange for trading, clearing and settlement. It is separate from the trading account you open with a broker.
A National Investor Number (NIN) is required to trade DFM-listed securities. It is free and usually issued within one working day, and you can apply:
Non-residents can apply with a passport copy. Nasdaq Dubai states that the NIN is equally valid for the DFM and Nasdaq Dubai, so one number covers both.
ADX issues its own investor number. You can apply through the ADX mobile app with UAE Pass, an accredited brokerage firm, an ADX customer service branch, or the TAMM government services platform. Residents need their original Emirates ID, non-residents need a passport and national ID card, and both need a bank letter showing an IBAN in the applicant’s sole name. Applicants must be over 18.
With an investor number in place, you open a trading account with a broker licensed to trade on the relevant exchange. Each exchange’s website lists its member brokers, and brokers differ in commissions, platforms, research, custody arrangements and access to international markets. Questions worth asking include:
Many brokers offer online stock trading in the UAE through apps and web platforms as well as by telephone. The DFM notes that once you appoint a broker, you can trade through the options it provides, such as its mobile app or an online platform.
Trading in the UAE follows a Monday-to-Friday week, after the country moved to a Saturday–Sunday weekend from 1 January 2022. The DFM and ADX follow the same daily structure, shown below in UAE time (GST, UTC+4).
| Session | DFM | ADX |
|---|---|---|
| Pre-opening | 09:30–10:00 | 09:30–10:00 |
| Continuous trading (main session) | 10:00–14:45 | 10:00–14:45 |
| Pre-closing / closing auction | 14:45–14:55 | 14:45–14:55 |
| Trade at last | 14:55–15:00 | 14:55–15:00 |
In the pre-opening session, orders are typically collected to set an opening price; the closing auction sets the closing price; and the trade-at-last session allows orders to be matched at that closing price. Hours differ during Ramadan, so it is worth checking each exchange’s annual notice.
DFM trades settle on a T+2 basis, meaning cash and shares change hands two working days after the trade date; check ADX’s current settlement cycle with the exchange or your broker. US equities have settled on a T+1 basis since 28 May 2024, so investors used to US markets should allow an extra day for sale proceeds. For residents, the timetable also means stock market trading in the UAE takes place during the working day, while the US regular session opens in the UAE evening.
Compared with broad global indices, UAE indices tend to be concentrated in a small number of sectors. Listed companies span many industries, but the following tend to carry significant weight:
Because the UAE’s currency is pegged to the US dollar, local interest rates broadly follow US Federal Reserve policy, which can affect bank earnings and property demand. Oil prices may also influence government spending and sentiment across the region. These links are tendencies rather than rules, and individual companies can behave very differently from their sector, which is one reason trading in the UAE stock market calls for company-level research rather than sector assumptions.
UAE-listed companies may distribute part of their earnings as dividends, although amounts and frequency vary and are never assured. ADX notes that dividend decisions and amounts are taken by a company’s board of directors, and that distributions can be paid in cash, in shares or as a combination of the two.
Practical points for shareholders include:
The UAE does not levy personal income tax, and under Cabinet Decision No. 49 of 2023 income from an individual’s personal investments is not treated as a taxable business for UAE corporate tax. Your home country may still tax dividends, so it is worth confirming your position with a qualified tax adviser.
Liquidity describes how easily you can buy or sell without moving the price. Trading activity tends to cluster in the larger companies, while smaller ones may trade thinly, with wider gaps between buying and selling prices. In stressed markets liquidity can fall quickly, which may make it harder to exit a position at the price you expect.
A portfolio made up only of shares in the UAE may be concentrated in a few sectors, in one economy and in companies exposed to similar drivers such as interest rates, property and energy. It can therefore be useful to consider how investing in stocks in the UAE fits within a wider portfolio rather than in isolation. Our guide to investment in Dubai and the UAE compares the local market with global stocks, ETFs and bonds.
Each listed company sets maximum ownership levels for foreign investors in its articles of association. Limits range from 15% to 100%, and some companies are restricted to UAE nationals. The DFM’s foreign ownership table shows, for each listed security, the permitted, actual and available percentages for nationals, GCC investors and other foreign investors. When the available room for a group reaches zero, further purchases by investors in that group may not be possible until room opens up.
Share prices can fall sharply, and a company can reduce or suspend its dividend. The UAE’s currency is pegged to the US dollar, which has historically limited exchange-rate risk for investors who measure their wealth in US dollars, but investors who think in euros, sterling or rupees remain exposed to those currencies. Speaking with a CMA-regulated financial advisor in Dubai can help you judge how much local exposure fits your goals.
Expats can buy shares in the UAE. Residents and non-residents can apply for an investor number and trade through a licensed broker, subject to each company’s foreign ownership limit. Some companies restrict ownership to UAE nationals, so it is worth checking the limit before investing.
The DFM requires a National Investor Number (NIN), which is also valid for Nasdaq Dubai, while ADX issues its own investor number. Both are separate from the trading account you open with a broker.
The DFM and ADX trade Monday to Friday. Pre-opening runs from 09:30 to 10:00 UAE time and continuous trading from 10:00 to 14:45, followed by a closing auction to 14:55 and a trade-at-last session to 15:00. Hours change during Ramadan.
DFM trades settle on a T+2 basis, two working days after the trade date; confirm the current cycle for ADX with the exchange or your broker. US equities, by comparison, have settled on a T+1 basis since May 2024.
The UAE does not levy personal income tax, and income from an individual’s personal investments is not treated as a taxable business for UAE corporate tax. Your home country may still tax the dividends, so a qualified tax adviser can confirm your position.
No single route suits everyone. A practical sequence is to obtain an investor number, compare licensed brokers on costs, custody and platform, and decide what share of your portfolio UAE stocks should represent given their sector concentration. A clear plan for position sizes and time horizon can help avoid decisions driven by short-term price moves.