Dubai's Equity Benchmark Gains 10.6% So Far This Year

The success of Dubai's diversification efforts once again came to the fore on Wednesday, as the emirate's benchmark stock index marked year-to-date gains of 10.6 per cent, despite facing global headwinds and geopolitical uncertainty.

The DFM General Index registered its third consecutive monthly gain in June, rising by 4.1 per cent to close the month at 5,705.76 points. This increase lifted the index's gains to the second highest in the Gulf Cooperation Council after Kuwait, which has gained 14.8 this year and 4.2 per cent last month.

Sectoral performance was largely positive, with six out of eight sector indices posting gains during the month. The materials index recorded the biggest monthly gain during June, surging by 21.9 per cent, followed by the industrial index, which advanced by 10.8 per cent. The financial index rose by 4.7 per cent during the month, ending at 3,984.2 points, driven primarily by strong double-digit share price gains in several key sector constituents, including Ekttitab Holding Company (+26.7 per cent) and Amlak Finance (+49.1 per cent).

The real estate index - the most heavily weighted among the DFM indices - gained 4.7 per cent during the month. This performance was supported by notable share price gains in companies such as Union Properties (+34.6 per cent) and Al Mazaya Holding Company (+11.8 per cent). The utilities index also advanced by 4.3 per cent, closing the month at 1,022.8 points, as all three constituent companies in the sector reported gains during the month, including a 3.3 per cent rise in the share price of Dewa.

According to Bloomberg's monthly stock performance data, Amlak Finance led the list of top gainers in June, posting a notable 49.1 per cent increase in its share price. It was followed by Union Properties and United Foods Co, which recorded gains of 34.6 per cent and 29.5 per cent, respectively. On the monthly decliners' side, Emirates Investment Bank registered the steepest drop, with a 12.3 per cent decline, followed by Agility and Dubai Insurance, which reported decreases of 11.1 per cent and 8.1 per cent, respectively, during the month.

Trading activity on the exchange increased in June despite the Eid holidays. The total volume of shares traded surged by 54.6 per cent, reaching 7.0 billion shares compared to 4.5 billion shares in May. In contrast, the total value of shares traded rose marginally by 0.3 per cent, amounting to Dh15.11 billion in June versus Dh15.1 billion in May. Union Properties topped the monthly trading volume chart with 1.2 billion shares traded, followed by Drake & Skull International and Deyaar Development with volume traded at 836.3 million and 669.7 million shares, respectively. In terms of traded value, Emaar Properties led with Dh3.6 billion worth of shares traded during the month, followed by Dubai Islamic Bank and Emirates NBD at Dh1.5 billion and Dh1.2 billion, respectively.

Dubai's real estate market continued its robust momentum in May, setting a new record with Dh66.8 billion in total sales transactions, according to data from Property Finder. Primary (off-plan) sales reached Dh17.9 billion, marking a remarkable 314 per cent y-o-y increase in value across 2,400 transactions. Meanwhile, the secondary (ready) market also achieved new highs, recording 6,078 transactions valued at Dh24 billion reflecting y-o-y growth of 8 per cent in volume and 21 per cent in value. These figures underscore sustained and strong demand in Dubai's resale property segment.

In Abu Dhabi, the FTSE ADX Index marked its third consecutive monthly advance in June, registering a 2.8 per cent increase during June following a moderate 1.6 per cent gain in the preceding month. The index concluded June at 9,957.52 points, resulting in a year-to-date gain of 5.7 per cent for 1H-2025 while the Q2-2025 gains came in at 6.3 per cent. Sectoral trends on the exchange favoured gainers, with eight out of ten sector indices recording gains. The overall advance in the FTSE ADX General Index was primarily supported by gains in the energy, financial, real estate, and utilities indices.

The real estate index led sectoral performance with a gain of 7.8 per cent, reaching 13,188.7 points, as share prices rose in four out of the five companies within the sector. Notably, Al Khaleeji Investment Company saw its share price increase by 7.7 per cent during the month. The utilities index followed with a 6.7 per cent gain, ending the month at 13,945.3 points, bolstered by a 6.7 per cent rise in the share price of its sole constituent, Abu Dhabi National Energy Co, during June. In contrast, the consumer staples index fell the most, declining 4.0 per cent as three out of six constituent companies registered share price decreases, led by a 9.7 per cent drop in shares of Hily Holding.

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