UAE stock markets poised for another stellar year

UAE stock markets poised for another stellar year

Last year, the country's equities were the best in US dollar terms, gaining 37%, data show

The Dubai Financial Market. - KT file

Published: Sat 28 Jan 2023, 6:13 PM

The UAE stock markets were the second-best performing stock market in 2022, and the best in US dollar terms with a gain of 37 per cent, recent research showed. The interest in the country’s equities is likely to continue this year as 11 initial public offerings are slated for this year.

“The interest in the local market last year was a result of the region’s success in taking many of the national companies public. In 2022 GCC share of global IPOs jumped to 23 per cent with the UAE in the lead by 12 companies raising $11 billion,” StoneX Retail’s Regional Director Ritu Singh told Khaleej Times in an interview.

The UAE is attractive because the stocks and priced in the dirham, which is pegged to the dollar and therefore there is not much exchange rate risk as in other emerging markets with currencies not pegged to the US dollar, Singh said. “Furthermore, with oil demand expected to reach a record high in 2023 according to the International Energy Agency, the region and the UAE