Today, the stock market is one of UAE’s leading sources of resources and serves as a key driver for the country’s economic growth. The stock market can be eccentric and can be considered capricious as diverse commodities and factors affect the economic index.
The stock market is the business which helps investors for long term investment. Buyers can buy stock from different companies and can list themselves in the stock exchange. UAE Stock Market is considered one of the big stock exchange in the world with the leading companies like Oman Insurance Company, Emaar properties, Emirates NBD, Travels and more than two hundred company registered and listed in Dubai Stock exchange in UAE. The best thing about the Stock exchange in UAE, they allow international companies to register themselves and can share stock for buyers.
Stock Market Exchange In UAE:
The stock exchange is nothing more than a giant globally network tend to organize the market place. Where every day huge sums of money are moved back and forth. According to some research, approximately 60 trillion euros a year are traded all over the world, which is more than the value of all goods and services of the entire world economy. However, it is not apples or second-hand toothbrushes that are traded on this market place. In this place shares of different organizations are traded. Securities are rights to assets, mostly in the form of shares. A share stand for a share in a company. But the question arises why are shares traded at all?
First and the foremost, the value of a share relates to the company behind it. This company can raise funds by selling the shares and invest or expand its business, so if a company has a good reputation, investors will back it and a company will poor reputation or poor performance will have difficulty selling its shares. Unlike a normal market in which goods can be touched and taken home but on the stock exchange only virtual goods are available in the form of share prices and tables on monitors. Such share prices can rise or fall within seconds. Therefore, shareholders have to act quickly and grab their opportunity to sell or buy the share. If a particularly large number of people buy weak shares and as a result, their value will rise. The value of UAE’s biggest companies is summarized in what is known as ADX share index.
Basically, there are three main stock centers in UAE and each stock exchange has different branches in all the major cities of UAE, which are as follows:
- Abu Dhabi Securities Exchange
- NASDAQ Dubai
- Dubai Financial Market
History Of UAE Stock Market In UAE
In November 2000, ADX was founded. The company trades UAE stocks. The company trades businesses from various sectors such as banking, insurance, services, industry, and hotels. This works with values such as transparency, completeness, efficiency and customer focus. There are so many companies registered to the ADX, some of them are, Union National bank, Qatar Telecommunications, Etisalat, ADIB, etc. Well, the UAE’s first stock exchange center is DFM. DFM operates according to Islamic principles, meaning that companies which are not subject to Sharia law are not approved. It is the highest profitable center in UAE. It works with five core values such as transparency, efficiency, privacy, completeness, and innovation. Is also holds the majority of NASDAQ Dubai shares. It includes more than 170 companies and some of the most renowned companies are, Dubai Islamic Bank, Gulf Finance House, Emirates NBD, Oman Insurance Company, Emaar Properties, etc.
Requirements To Buy Stocks In UAE
To invest in these stock exchanges there are some eligibility criteria, firstly, you must have a valid passport, a trading account and investor number and secondly, the guardian will sign on the persons’ application who are below 21 years of age.