Global funds turn to UAE stocks as Abu Dhabi and Dubai trading grows

Dubai: Global investors are increasing their focus on UAE capital markets as Abu Dhabi and Dubai report stronger trading activity, higher foreign participation and sustained demand for listed opportunities despite regional volatility.

Foreign investors accounted for 47.5% of total trading value on ADX in the first quarter of 2026, while DFM said overseas investors represented 54% of total trading value and 79% of new investor registrations during the same period.

The figures were highlighted at the HSBC GCC Exchanges Conference in London this week, which brought together more than 300 institutional investors, over 100 Middle East corporates and all seven GCC stock exchanges across more than 3,000 meetings, making it the largest edition in the event’s five-year history.

The conference focused on the resilience of GCC economies, the depth of regional capital markets and the investment opportunities available across sectors and asset classes. Discussions also covered how businesses and policymakers are adapting supply chains, funding structures and market access during a period of market volatility.

“The UAE’s capital markets continue to demonstrate resilience and structural depth, supported by strong economic fundamentals, a diversified investor base and a clear long-term growth agenda," said Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited. "While recent events have tested markets globally, we have seen investor confidence return as volatility has eased and risk premiums have normalised."

ADX recorded Dh85 billion in trading activity in the first quarter of 2026, up 22% year-on-year. The exchange’s market capitalisation stood at Dh2.8 trillion, while listed companies distributed Dh66.2 billion in dividends during the same period.

“Periods of uncertainty reveal the true strength of a market. Abu Dhabi's capital markets and listed companies have continued to deliver with strength and discipline, reflected in solid corporate results, sustained business continuity, and an ability to secure meaningful commercial opportunities regardless of the varying global environment," noted Abdulla Salem Alnuaimi, Group Chief Executive Officer, ADX Group. "This resilience is seen in the performance of our market. With a market capitalisation of Dh2.8 trillion (about $770 billion), ADX recorded Dh85 billion (about $23.2 billion) in trading activity (representing a 22% year-on-year increase) and foreign investors accounting for 47.5% of total trading value in the first quarter of 2026. ADX-listed companies have distributed Dh66.2 billion (about $18 billion) in dividends in the same period and continued to deliver strong earnings, significant shareholder returns and sustained business growth. We will continue to connect more global investors with Abu Dhabi’s long-term growth story and expand investors’ access to the dynamic investment opportunities via ADX.”

HSBC recently became the first international bank to serve as a General Clearing Member on ADX, a move aimed at widening global investor access to Abu Dhabi’s capital markets.

Dubai Financial Market also reported higher activity in the first quarter of 2026, with average daily trading value exceeding Dh1 billion, up 56% year-on-year.

“Dubai’s capital markets have continued to demonstrate resilience, momentum and focus, and this year’s HSBC GCC Exchanges Conference is a reflection of that sustained investor confidence," said Hamed Ali, Chief Executive Officer of DFM and Nasdaq Dubai. "In the first quarter of 2026, average daily trading value on DFM exceeded Dh1 billion, up 56% year-on-year, with foreign investors accounting for 54% of total trading value and 79% of new investor registrations coming from international markets.”

The numbers point to rising international interest in UAE-listed assets at a time when global funds are reassessing risk across emerging markets, with liquidity, dividend returns and market access becoming important factors in allocation decisions.

Technology and digital infrastructure were also part of the investor discussions, as companies and policymakers look at ways to strengthen market access and long-term funding options.

HSBC’s $550 million financing for Core42, part of G42 Group, was cited as part of its wider UAE activity, with the funding aimed at scaling global AI infrastructure and accelerating AI cloud and compute deployments across the US and Europe.

The bank is also serving as the preferred banking partner in Asia for Abu Dhabi Investment Office and Dubai Economic Development Corporation, supporting their efforts to attract investment into the UAE.