How to Invest in International Stock Markets from UAE

By Sakshi Srivastava - 15 Mar 2022 Last Updated: 19 May 2022
How to Invest in International Stock Markets from UAE

A stock market is a location where stocks (shares) of a specific company are traded. Companies divide their shares and trade them, allowing the general public to buy and sell stocks. Because they own a portion of the company, the investors profit if the company does well. It is recommended to make a long-term investment of at least 5 years in order to make a decent profit.

What exactly is the Stock Market?

Companies must list themselves on a stock exchange in order to attract investors. The majority of large corporations will have their stocks listed on the stock exchange.

The UAE Stock Exchange is very similar to any other stock exchange around the world. Well-known companies such as Emirates NBD, Oman Insurance Company, Emaar Properties, and 200 more public limited companies are listed on the stock exchange houses in the UAE. The stock exchange centers in the UAE allow international companies to register and make their stocks available to the public.

United Arab Emirates Stock Exchanges

In the United Arab Emirates, there are three stock exchanges. The Dubai Financial Market (DFM), the Abu Dhabi Securities Exchange (ADX), and NASDAQ Dubai are all part of the Abu Dhabi Securities Exchange (ADX).

Dubai Financial Market (DFM)

DFM is the UAE's first stock exchange centre. It was founded in early 2000. There are over 170 companies listed with them. Despite some profit fluctuations in the DFM market, the year 2007 saw a significant increase in profits. It was estimated to be 1439.6 Million. DFM operates on Islamic principles, which means that companies that violate Sharia law will be rejected.

DFM has been working on UAE regulations governed by the Securities and Commodities Authority since 2010. (SCA). It operates on the basis of five core values: transparency, efficiency, confidentiality, integrity, and innovation.

Companies listed on DFM include:

 

DFM has a number of companies registered. It gives its approval to all sectors and organizations that adhere to Sharia principles.

Here is a list of DFM 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 Arabai
  • DU

Abu Dhabi Securities Exchange (ADX)

ADX was founded in November of 2000. It trades stocks of companies based in the UAE. It has offices in Ras Al Khaimah, Al Ain, Fujairah, and Sharjah, among other places. It trades companies from various industries such as banking, insurance, services, industries, and hotels. It is guided by values such as transparency, integrity, efficiency, and customer-centricity.

ADX-registered businesses include:

  • ADCB
  • ADIB
  • FAB
  • Finance House
  • Union National Bank
  • Noor Takaful
  • Etisalat
  • Qatar Telecommunications
  • Gulf Pharmaceutical Industries

NASDAQ Dubai

NASDAQ Dubai trades stocks of both domestic and international companies. DFM owns the vast majority of the stocks listed on NASDAQ Dubai. It's in the Dubai International Financial Center (DIFC). It lists the most valuable companies for trade.

NASDAQ-listed companies include:

  • Bank of London and the Middle East (BLME)
  • Real Estate Investment Trust (REIT)

What is the Best Way to Invest in the Stock Market?

Following a simple procedure, you can buy stocks in the UAE

Step 1: Apply for an Investor ID (NIN)

  • Fill out the Investor Number form, which is available online.
  • Attach required documents such as a passport, a family book (for UAE nationals), a residency visa (for UAE residents), and a UAE national ID (UAE Residents)
  • Documents can be submitted online at http://www.dfm.ae/ or in person at the World Trade Center, CSD Client services affairs desk, or through a licensed DFM or NASDAQ broker.
  • The NIN is provided at no cost and is provided immediately after the application is approved.

Step 2: Locate a Broker

  • After you have obtained an investor number (NIN) go to a brokerage firm that is registered with DFM or NASDAQ. You can find and register with Stock Brokers in the UAE.
  • Open a trading account

Step 3: Trading

After obtaining a NIN and a trading account, you can begin buying and selling stocks with the assistance of a licensed broker.

Step 4: Tracking

Track the Sensex of the company's stocks using the credentials provided by the broker.

Eligibility criteria for an investor to purchase stocks in the UAE:

  • Non-residents may also apply.
  • Applicants must be in possession of a current passport.
  • An Investor Number is required (NIN)
  • A trading account is required.
  • Minors under the age of 21 are eligible with the signature of a guardian on the applications.

The UAE government invites everyone to buy and sell stocks at their exchange centers. The stock market is volatile, and it is recommended that you conduct thorough research before purchasing any stock. Before purchasing or selling any stock, it is essential to have some local knowledge. Continuous tracking and keeping yourself up to date aids in making money in the stock market.

Conclusion

Dhanguard assists visitors in locating the appropriate financial product by comparing various products offered by various banks in the UAE. It compares various loans, insurance policies, accounts, and credit cards. It works with the goal of providing users with a clear picture of what to expect from their funds and what they can get from them.

Investments is made simple and hassle-free with Dhanguard in Dubai, UAE. We provide you various investment options like Index Fund, Gold, Mutual Fund, Stocks, SIPs, Bonds, Fixed Deposite, Sukuks with the minimum possible trouble including paperwork & payments.

By Sakshi Srivastava

15-Mar, 2022

Investments Related FAQ

Frequently Asked Questions

  • Why should one Invest?

    Earning money now is insufficient, since it may not be enough to meet life's financial objectives. As a result, it is critical to spend money. Saving money in the bank is the same as giving up an opportunity to make money. It is crucial to invest carefully in the different plans available on the market, choosing the one that is ideally tailored to your objectives.

  • What is the eligibility to buy Investment Plans?

    With new technologies and goods, the investment market is rising by the day. The conditions for investing in different forms of investment instruments differ depending on the providers in the UAE.

  • What are the best Investment for Expats in UAE?

    Expats can invest in stocks, bonds, real estate, cash, UAE mutual funds, or other forms of funds in the UAE.

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