December 4, 2022
Stock Market

Stock Trading UAE: How To Invest In The UAE Stock Market

The trading of stocks/shares of a certain company takes place on a stock market. Businesses divide their shares into separate markets where the general public can purchase or trade the equities. As owners of a portion of the company, the investors earn to a certain extent if the business succeeds. Going for a long-term investment of at least five years is advised if you want to make a significant return.

There are many similarities between the UAE Stock Market and other stock markets throughout the world. 200 public limited businesses like Oman Insurance Company, Emaar Properties, and Emirates NBD, among others, are listed at the UAE stock exchange houses. International companies can register and list their stocks on the best forex trading platforms in the UAE. In the UAE, there are 3 stock exchange locations. NASDAQ Dubai, the Abu Dhabi Securities Exchange, and the Dubai Financial Market.

NASDAQ Dubai:

NASDAQ Dubai trades shares of national and multinational corporations. The majority of the stocks listed on NASDAQ Dubai are owned by DFM. The Dubai International Financial Center(DIFC) is where NASDAQ Dubai is situated. The best-valued businesses are listed there for trading.

NASDAQ Listed Companies: Bank of London and the Middle East(BLME), and Real Estate Investment Trust(REIT) among others.

Abu Dhabi Securities Exchange(ADX):

Founded in November 2000, Abu Dhabi Securities Exchange(ADX) deals in shares of UAE-based corporations. You can find locations in Sharjah, Al Ain, Fujairah, and Ras Al Khaimah. It transacts with businesses in various industries, including banking, insurance, services, industries, and hotels. It operates with openness, client focus, reliability, and effectiveness.

ADX Listed Companies: ADCB, ADIB, FAB, Finance House, Union National Bank, Noor Takaful, Etisalat, Qatar Telecommunications, Gulf Pharmaceutical Industries.

Dubai Financial Market(DFM):

The first stock exchange center in the UAE is DFM which was launched in the year 2000. More than 170 businesses are listed with them. Even though there were some profit variations in the DFM industry, 2007 had a high profit recorded at 1,439,600,000. Companies that violate sharia law will not be accepted because DFM is based on Islamic principles.

DFM has been working on UAE legislation that is overseen by the Securities and Commodities Authority (SCA) since 2010. It operates under the principles of integrity, innovation, efficiency, secrecy, and transparency.

DFM Listed Companies: Ajman Bank, Commercial bank of Dubai, Dubai Islamic Bank, Gulf Finance House, Mashreq bank, Emirates NBD, SHUAA Capital, Dubai Investments, Oman Insurance Company, Emaar Properties, Air Arabia, DU.

How Do I Invest In The Stock Market?

You can purchase stocks in 4 simple steps:

Step #1: Apply For An Investor Number (NIN)

  1. Complete the online form for an Investor Number.
  1. Include any necessary documents, such as a passport, family book(for UAE Nationals), a residency visa(UAE Nationals), and a UAE national ID (UAE Nationals).
  1. You can submit the paperwork at the World Trade Center, the CSD Client Services Affairs desk, or through a DFM or NASDAQ broker that is authorized to conduct business there.
  1. As soon as the application is approved, the NIN is automatically delivered free of charge.

Step #2: Acquire A Broker

  1. Visit a brokerage company that is listed at DFM or NASDAQ after receiving an investor number (NIN). Stock brokers are available in the UAE to register with.
  1. Set up a trading account.

Step #3: Trade

You can begin buying and selling stocks with the aid of a registered broker once you have obtained a NIN and trading account.

Step #4: Track

Track the Sensex of the company’s stocks using the broker’s credentials.

An investor must meet the following requirements in order to purchase stocks in the UAE:

  1. Non-Residents can also apply
  1. The applicant’s passport must be current
  1. Requires an Investor Number (NIN)
  1. A trading account is a must
  1. Minors under 21 are eligible if their guardian signs the application

In conclusion: 

The stock market has always been an uncertain economy. The UAE government-run exchange facilities are open to everyone who wants to buy or sell stocks, but it is important that you first undertake deep research and knowledge before doing so. Buying or selling stocks, whether real estate, materials, or some of the best crypto to invest your money in, will not be that difficult if you have local knowledge. Make sure that you work with one of the best forex brokers in UAE in order to make the right investments and check with financial consultants in Dubai like Orient Finance, among others.

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