Dubai Market Steady as Abu Dhabi Gains Amid Stock Trading Surge

Dubai Market Holds Steady Amidst Fluctuations in Financial Sector

The Dubai Financial Market (DFM) witnessed significant trading activities in recent times, with March 2025 seeing trading volumes spike by an impressive 36.9% from the previous month. This surge culminated in 4.8 billion shares exchanging hands. Despite this activity, the DFM General Index did encounter a slight decline, slipping by 1.5% to rest at 4,246.3 points.

The financial sector emerged as a notable area of pressure within the market. Some key players felt the brunt of this downturn, with Mashreq Bank dipping by 14.6% and Dubai Islamic Bank following with a 9.5% decrease. This contrasted with the real estate sector, which provided a silver lining by driving market gains. In particular, companies like Union Properties witnessed a remarkable increase of 20.3%, while Deyaar Development wasn't far behind with an 11.5% rise.

Abu Dhabi Sees Incremental Gains as Strategic Moves Indicate Optimism

Over in Abu Dhabi, the story was one of cautious optimism. The Abu Dhabi Securities Exchange (ADX) did conclude sessions on an upward note, with the FTSE ADX index inching up by 0.1%. This uptick was fueled predominantly by noteworthy players in the banking and telecom sectors. First Abu Dhabi Bank led the charge with a 1.1% increase, while E& Group added a 1.4% boost.

However, the gains weren't uniform across the board, as consumer discretionary and industrial sectors faced setbacks. This mixed performance didn't overshadow the overall positive momentum aided by strategic ventures in the region. For instance, Dubai Aerospace Enterprise's commitment of $1 billion to purchase 17 fuel-efficient aircraft echoes a strategic resilience and confidence in future aviation growth.

Looking at the bigger picture, the UAE's economy is forecasted to grow by 4% in 2025. This growth is largely underpinned by a robust push from non-oil sectors, with real estate and aviation acting as key pillars. Notably, Dubai's property market alone reported sales of AED 41 billion in February 2025, hinting at an enduring demand despite broader global economic headwinds.