Dubai experiences significant rise in GCC stock market performance in July, demonstrating a nearly 8% increase
In July, the Dubai Financial Market (DFM) continued its impressive run, with the value of shares traded on the DFM increasing 10.7% to Dh16.7 billion. This growth was reflected in the DFM General Index, which rose 7.9%, marking its fourth consecutive monthly gain and the highest monthly performance across the Gulf Cooperation Council (GCC) region.
The strong performance of the DFM can be attributed to a variety of factors. Robust sector performance, particularly in banking, real estate, and successful Initial Public Offerings (IPOs), has bolstered market strength. Notable gains include a 12.1% surge in the Financials Index, a 10.7% rise in the Real Estate sector, and a 6.9% increase in the Industrials sector.
Ekttitab Holding Company was the top gainer in the DFM in July, with a 43.2% increase. Other significant gains were seen in United Foods Co and Commercial Bank of Dubai, with increases of 21.5% and 20.1%, respectively.
Dubai's broader economic approach focusing on innovation, diversification beyond oil, and targeted investments has also enhanced investor confidence and market stability. This, coupled with increased engagement from both institutional and international investors, has supported sustained capital inflows.
The DFM General Index rose 10.6% in the first half of 2025, with total market capitalization increasing 9.7% year-on-year to AED 995 billion. This strong local market resilience and growing institutional and foreign investor participation are reflected in the DFM General Index's year-to-date (YTD) return of 19.4%, the highest among GCC markets in 2025.
In comparison to peers, while other GCC markets like the Saudi Exchange remain large and stable, DFM’s index crossing significant milestones (e.g., passing the 6,000-point level after 17 years) and outperforming in percentage gains underscores its standout performance in the region in 2025.
Across the GCC region, markets continued to rise in July, with the MSCI GCC Index posting a 2.2% gain. However, Saudi Arabia and Bahrain saw declines of 9.3% and 1.5% respectively on a YTD basis.
In Abu Dhabi, the Real Estate Index climbed 7.0% in July, with Al Khaleej Investment Co. seeing a 20.2% surge. The Health Care Index also rose by 11.0%, led by PureHealth's 11.9% jump. Despite a 4.6% decline in the Utilities Index, the overall growth was driven by strong performances in Health Care, Financials, and Real Estate.
The FTSE ADX Index in Abu Dhabi closed at 10,370.66 points in July, bringing its YTD gain to 10.1%. This marked its fourth consecutive monthly gain, following a 4.1% increase in July.
In conclusion, the DFM's outperformance in 2025 can be attributed to a combination of strong financial results, strategic economic positioning, diversified sector strength, and enhanced investor confidence. As Dubai continues to attract both local and international investors, the DFM is expected to maintain its leading position among GCC markets.
- The strong performance of the DFM in July, as well as the first half of 2025, can be attributed to robust sector performance, particularly in banking, real estate, and successful Initial Public Offerings (IPOs), contributing to increased investor confidence and market stability.
- The Real Estate sector in Dubai experienced a 10.7% rise in July, with substantial gains seen in Ekttitab Holding Company, rising by 43.2%. In Abu Dhabi, the Real Estate Index climbed 7.0%, with Al Khaleej Investment Co. witnessing a 20.2% surge.
- More broadly, across the GCC region, markets continued to rise in July, but the DFM’s index crossing significant milestones and outperforming in percentage gains underscores its standout performance compared to peers like the Saudi Exchange.
- The DFM General Index's year-to-date (YTD) return of 19.4% in 2025 is the highest among GCC markets, reflecting growing institutional and foreign investor participation in the local market.
- The health care sector in both Dubai and Abu Dhabi showed growth, with the Health Care Index in Abu Dhabi rising by 11.0%, led by PureHealth's 11.9% increase.
- Despite a 4.6% decline in the Utilities Index in Abu Dhabi, the overall growth was driven by strong performances in Health Care, Financials, and Real Estate, highlighting the diversified sector strength that supports the DFM's lead among GCC markets.
