Page 59 - SALIK PR REPORT OCTOBER 2023

1. Direct stock investments

One of the most straightforward ways to invest in the UAE stock market is by
purchasing shares of publicly-listed companies on various UAE stock
exchanges. The three predominant bourses in the UAE include the Dubai
Financial Market (DFM), the Abu Dhabi Securities Exchange (ADX), and
Nasdaq Dubai. Investors can buy shares of companies listed on these
exchanges through brokerage firms or trading platforms. Retail investors can
also directly apply for initial public offerings of companies through the DFM
and ADX.

A slew of listings in the last year has added depth to the local markets and
also provided good returns to investors. As of October 16, Salik, for instance,
is trading at more than 56 per cent from its IPO price of Dh2. The share price
of Adnoc Logistics is up 72 per cent from its listing price. Adnoc Gas’ shares
are trading at more than 35 per cent from its initial public offering price of
Dh2.37. These are just a handful of examples of the companies that have
listed on the local bourses in the last year.

What’s interesting is, investors do not need a trading platform or a brokerage
firm to apply for IPOs. Retail investors can register directly with DFM and ADX
and generate respective investor numbers (NIN) to apply for stocks.

However, before investing directly in stocks, it's essential to conduct thorough
research on the companies you're interested in. Analyse their financials,
market trends, growth prospects, and overall industry performance.
Understanding the economic landscape and regulatory environment of the
UAE is vital to making informed investment decisions.

2. Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) are investment funds that hold a diversified
portfolio of assets, such as stocks, bonds, or commodities. ETFs are traded
on stock exchanges, providing investors with exposure to a specific market or
sector without having to purchase individual stocks.

In the UAE, there are ETFs that track the performance of the local, regional,
and global stock markets, providing a relatively easy way to invest in a

https://www.khaleejtimes.com/business/why-and-how-can-you-invest-in-the-uae-stock-markets