DFM Attracts Global Investors with Strong Returns and Robust Activity
Foreign Investors Drive DFM Trading Surge
Foreign investors drove 50% of all trading on the DFM by end of 2024. They represented 85% of all registered investors, according to HSBC’s latest market report. Investor confidence stems from Dubai’s regulatory transparency and market-friendly reforms.
DFM Outperforms MSCI EM Index
The DFM delivered a 4.9% annualised return in US dollars during 2024. This beat the MSCI Emerging Markets Index, which returned only 2.8% in the same period. HSBC highlighted this performance as a key driver for global investor interest. High dividend yields and low volatility contributed to DFM’s appeal for institutional investors.
Dubai Capital Markets Gain Global Recognition
Dubai aims to become a top four global financial hub by attracting global capital. DFM’s rising foreign participation reflects international confidence in Dubai’s financial ecosystem. Wealth and asset managers in DIFC increased 16% year-on-year to 410 firms. Among these are 75 hedge funds, with 48 managing over $1 billion each. Global fund managers continue setting up regional headquarters in the DIFC.
Dubai Leads with Landmark IPOs and Debt Deals
Dubai captured 2.2% of global IPO volumes in 2024. The city hosted the largest tech IPO globally with Talabat, a delivery platform. IPOs in Dubai attracted strong and record-breaking investor demand, HSBC reported. DFM introduced a stabilisation mechanism during Parkin’s privatisation to support price performance. HSBC served as Joint Global Coordinator on two of DFM’s three IPOs in 2024.
Increased listings are expected in real estate, tech, and transport sectors.
Chinese Firms Boost DFM Debt Activity
Chinese companies listed $22 billion in debt on Dubai’s exchange by year-end 2024. Outstanding sukuk listed across Nasdaq Dubai and DFM reached $97.8 billion in 2024. In Q1 2025, sukuk issuance jumped 42% year-on-year to $4.71 billion. Sukuk made up 76% of Nasdaq Dubai’s debt market activity in that period.
HSBC Maintains Strong Market Role
HSBC led 65% of IPO deal value in UAE markets between 2022 and 2025. The bank continues to play a key role in DFM’s IPO and debt issuance growth.