The Dubai Financial Market (DFM) witnessed a historic surge yesterday, breaching the 6500-point mark – a level not seen since March 2006. This significant milestone signals a robust upward trend, accompanied by a record-breaking increase in the market capitalization of listed companies, exceeding levels observed two decades ago. The sustained momentum and positive activity in the سوق دبي المالي (Dubai Financial Market) are attracting considerable attention from investors and analysts alike.
Historic Rally: DFM Reaches New Heights
The DFM General Index closed at 6495.17 points, a 1.5% increase equivalent to 97.83 points. This marks the fifth consecutive session of gains, fueled by strong corporate earnings announcements for the fourth quarter of 2025. The index’s climb past the 6500 threshold isn’t merely a numerical jump; it represents a pivotal moment in the market’s evolution. Experts believe this signifies a transition into a period of sustained maturity and growth, underpinned by solid economic fundamentals.
The overall market sentiment remains overwhelmingly positive, driven by a diversified range of sectors contributing to the upward trajectory. This contrasts with previous periods of growth which were often concentrated in one or two key industries.
Surging Market Capitalization and Sector Performance
The market capitalization of the سوق دبي المالي soared to over AED 1.070 trillion by the end of yesterday’s trading session, a substantial increase from the AED 1.054 trillion recorded the previous day. This represents gains exceeding AED 15.76 billion.
Several sectors played a crucial role in this impressive performance. Notably:
- Real Estate: Led the gains with a significant increase of 2.37%.
- Banking: Followed closely with a rise of 1.14%.
- Utilities & Industry: Experienced growth of 1.12% and 1.58% respectively.
- Telecommunications: Showed strong momentum, increasing by 1.96%.
This broad-based rally demonstrates the increasing resilience and diversification of the Dubai economy. The strength across multiple sectors indicates a more sustainable growth pattern than previously observed.
Foreign Investor Confidence Boosts Trading Volume
Foreign (non-Arab) investors demonstrated strong confidence in the سوق دبي المالي, resulting in net purchases of AED 193.87 million. This was achieved through purchases totaling AED 490.13 million, against sales of AED 296.26 million. This influx of foreign capital further validates the market’s positive outlook and its growing appeal as an investment destination.
Trading activity was also robust, with total liquidity exceeding AED 1.23 billion. This was generated from the trading of approximately 447.95 million shares, executed through 18,118 transactions. The high trading volume underscores the increased investor participation and the overall vibrancy of the market.
Expert Analysis: A New Era for Dubai’s Financial Market
Mahmoud Atta, CEO of Al Sakk Securities Brokerage, emphasized that the DFM’s recent achievement is more than just a temporary surge. He described it as a clear indication of entering a phase of “historic maturity.” Atta explained to Al Emarat Al Youm that reaching levels not seen in two decades signifies the completion of a major correction cycle and the beginning of a growth phase built on strong economic foundations.
He further highlighted the fundamental difference between “Dubai 2026” and “Dubai 2006.” Previously, growth was often driven by a limited number of sectors and dominated by local retail investors. Today, the rally is fueled by diversification, with companies like Emirates NBD reaching unprecedented historical highs and utilities like DEWA showing strong performance. This shift indicates that investors are now purchasing “operating profits” and institutional strength, reflecting the overall vitality of the Dubai economy. استثمارات أجنبية (Foreign Investments) are playing a key role in this new dynamic.
Abu Dhabi Securities Exchange Also Gains Momentum
Meanwhile, the Abu Dhabi Securities Exchange (ADX) also closed higher yesterday, rising by 0.972% or 99.21 points to reach 10,304.92 points. The ADX market capitalization increased to approximately AED 3.151 trillion, a gain of over AED 23.9 billion compared to the previous day.
Liquidity on the ADX exceeded AED 2 billion, with around 433.79 million shares traded through approximately 30,130 transactions. This positive performance across both major UAE exchanges reinforces the overall strength and optimism within the region’s financial markets. الأسهم الإماراتية (UAE Stocks) are proving to be increasingly attractive to both local and international investors.
Looking Ahead: Sustained Growth and Diversification
The recent performance of the سوق دبي المالي and the ADX signals a promising outlook for the UAE’s financial markets. The diversification of economic drivers, coupled with increasing foreign investment and strong corporate earnings, suggests that this upward trend is likely to continue. Investors are advised to remain informed and conduct thorough research before making any investment decisions, but the current environment presents a compelling opportunity for growth and returns. The focus will be on monitoring the sustainability of these gains and the continued strength of the underlying economic fundamentals.