UAE Investors Broaden Global Reach As Capital Market Momentum Builds

(MENAFN- Khaleej Times) UAE investors are increasingly expanding beyond traditional real estate holdings and building exposure to international equities, technology companies, infrastructure assets and global markets as the country's capital markets continue to attract record levels of activity.

The shift comes amid a period of strong performance for local exchanges. The MSCI UAE Index returned 26.72 per cent in 2025, significantly outperforming conventional bank savings rates, while the combined market capitalisation of the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) reached about Dh4.12 trillion by the end of the year.

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Foreign participation has been a key driver of growth. Net foreign investment into UAE capital markets reached Dh18.7 billion in 2025, while average daily trading volumes rose 24.16 per cent year-on-year to Dh2.21 billion. Foreign investors accounted for 47.5 per cent of trading value on ADX in early 2026, while overseas investors represented 54 per cent of trading value and 79 per cent of new investor registrations on DFM.

Industry executives say investors in the UAE increasingly see opportunities beyond national borders.

Tajinder Virk, Co-Founder and Group CEO of Dealing and Finvasia Group, said UAE investors are digitally savvy and increasingly seek global diversification.“UAE investors tend to think globally. Many are digitally confident, familiar with several asset classes and unwilling to manage multiple platforms simply to build a diversified portfolio,” he said.

That trend is reflected in the UAE's expanding overseas investment footprint. Led by sovereign wealth funds such as Mubadala and ADIA, alongside a growing retail investor base, outward foreign direct investment flows reached $63.35 billion (Dh232.7 billion) in 2025, bringing the country's overseas investment stock to $402.7 billion.

Domestic capital markets are also deepening. According to the Capital Market Authority, equity listings totalled Dh14.53 billion in 2025, including Dh7.29 billion raised through IPOs and Dh7.24 billion through direct listings. Listed bonds and sukuk reached Dh27.6 billion, while private-placement bond and sukuk issuances totalled Dh638 billion.

Mohamed Ali Al Shorafa, Chairman of the CMA, said:“The UAE's financial sector is undergoing a qualitative transformation where national vision intersects with the dynamism of global markets.”

Globally, investment opportunities continue to expand. SIFMA data shows global equity market capitalisation reached a record $157.8 trillion in 2025, up 18.9 per cent year-on-year, while global equity issuance climbed 13.5 per cent to $573.8 billion.

However, Virk cautioned against treating investing as a short-term activity. “Good investing should involve identifying the right opportunity, making a considered decision and having the patience to hold,” he said.

“Technology has made market information abundant, but abundance has not automatically produced better judgement. In many cases, it has produced more noise. I believe the real value of technology now is to reduce that noise, provide context and give an investor the confidence to act with purpose.”

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