Dubai Financial Market Sees High Volume Yet Slips; Abu Dhabi Gains Slightly

Dubai Market Experiences Intense Trading Days

Recently, the Dubai Financial Market (DFM) has been bustling with activity, marking a significant rise in trading volume throughout March 2025. The numbers shot up by 36.9% compared to February, hitting an impressive 4.8 billion shares. However, this boom in activity came with its own set of challenges. Despite the influx, the DFM General Index took a dip of 1.5%, closing at 4,246.3 points. The financial sector took the brunt of this downturn, with notable declines from Mashreq Bank and Dubai Islamic Bank, which dropped by 14.6% and 9.5%, respectively.

In contrast, the real estate sector seems to be telling a different story. Companies like Union Properties and Deyaar Development are enjoying a surge, rising by 20.3% and 11.5% respectively. This segment appears to be the saving grace amid the declining trajectory of the financial groups.

Abu Dhabi's Market Gains Slightly Amidst Sectoral Challenges

Meanwhile, the scene in Abu Dhabi paints a slightly more optimistic picture. The Abu Dhabi Securities Exchange (ADX) managed a small gain as the FTSE ADX index nudged upward by 0.1%. Support from the banking sector, with First Abu Dhabi Bank ticking up by 1.1%, and E& Group growing by 1.4%, helped cushion broader sector declines. However, consumer discretionary and industrial stocks saw less sunshine, experiencing a general pullback.

Economic forecasts suggest a steadfast grow for the UAE, with an anticipated expansion of 4% in 2025 led by non-oil sectors. The real estate market, specifically in Dubai, is a powerhouse in this growth narrative. February recorded AED 41 billion in property sales, indicating robust market dynamics.

Strengthening the economic resilience, strategic initiatives are in play, like Dubai Aerospace Enterprise’s significant $1 billion investment in 17 modern, fuel-efficient planes. Moves like this reflect the sector's drive to adapt and thrive despite international economic headwinds.