Tuesday, 02 January 2024 12:17 GMT

Emirati Stocks Dominate 2025 With Record Market Returns


(MENAFN- Khaleej Times)

Emirati and UAE-listed stocks have continued to attract rising levels of foreign investment this year, underpinned by the nation's rapid economic growth, ambitious long-term innovation strategy, and its reputation as a safe haven amid global market volatility, data shows.

“One of the defining features of the UAE market this year has been the strength and resilience of local champions across key sectors such as real estate, banking and technology,” said Farhan Badami, Business Development Manager at eToro.“As the country continues to invest in innovation, infrastructure and business-friendly reforms, we are seeing both local and international investors increasingly view the UAE as a core market in their portfolios, rather than a satellite exposure.”

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While names such as Emaar and Aldar have dominated the UAE property narrative in recent years, Union Properties - one of Dubai's oldest developers - has emerged as one of the Dubai Financial Market's top performers. Delivering an impressive 91 per cent return for investors this year, the company has been buoyed by renewed optimism in Dubai's real estate sector, strong demand for residential projects, and progress in strengthening its balance sheet. Investor confidence has improved significantly as Dubai's real estate cycle continues to benefit from population growth, new long-term visa pathways and strong interest from overseas buyers.

Amlak Finance has also been among the strongest performers on the DFM, posting gains of over 80 per cent this year. As a leading Sharia-compliant mortgage finance provider, Amlak sits at the core of Dubai's dynamic real estate and financing ecosystem. The surge in property transactions has naturally driven a rise in mortgage activity, reflected in the company's strong third-quarter earnings. For investors seeking exposure to the UAE's property boom without directly investing in real estate, Amlak has become a standout name and is expected to remain a key player heading into 2026.

In the finance sector, Abu Dhabi Islamic Bank (ADIB) has been the best-performing stock on the Abu Dhabi Securities Exchange this year, with shares rising more than 44 per cent in 2025. Strong demand across both retail and corporate banking has fuelled solid earnings growth. Notably, four of the top ten performers on the ADX this year are from the banking sector, underscoring the industry's role as a key pillar of Abu Dhabi's economy. As one of the UAE's most prominent Sharia-compliant institutions, ADIB remains widely regarded as a dependable performer during periods of regional uncertainty.

The UAE's commitment to global technological leadership has been reinforced by the performance of Presight AI, which brought a modern and innovative element to the local market this year. Shares have climbed 42 per cent, driven by the company's role in Abu Dhabi's strategic expansion into artificial intelligence, data analytics and advanced digital infrastructure. With governments and businesses across the region increasing their investment in AI and data solutions, Presight is seen as a key proxy for the UAE's broader ambitions in the fast-growing technology sector.

The strength and diversity of these top-performing stocks align with insights from the latest Retail Investor Beat survey, which shows that UAE investors continue to demonstrate one of the strongest preferences globally for backing local companies. This year's market leadership - spanning real estate, banking and technology - reflects the sectors UAE investors favour most.

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Khaleej Times

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