When it comes to financial stability, the timeless wisdom of “Let your money work for you” has never been more relevant. Investing is not just a pathway to potential wealth but also a means to secure your financial future. You have two primary avenues to earn money: working for someone else or venturing on your own. However, making your money work for you is another powerful way to grow wealth. This approach leverages the power of investing, allowing your capital to grow exponentially over time with minimal active effort.
In this guide, we will explore investing in the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX), two of the most prominent financial markets in the UAE.
Why diversify your investments?
Diversifying your investments across various stocks offers several key benefits. It helps grow your savings, protects your wealth from inflation and taxes, and optimises the returns on your investment portfolio. In the UAE, DFM and ADX provide robust platforms for such diversification.
The Dubai Financial Market (DFM)
The Dubai Financial Market (DFM) is a leading financial market in the region, offering a dynamic multi-platform marketplace for raising capital, listing, and trading across various securities and asset classes. As the preferred IPO and listing exchange for leading issuers in key economic sectors, DFM plays a crucial role in driving economic development in the UAE.
How to trade?
Starting your trading journey with DFM is straightforward:
- Appoint a broker and obtain a DFM Investor Number (NIN):
- Select a licensed broker to facilitate your transactions. Brokers such as Emirates NBD, Mashreq, International Securities (an IHC company), and BHM Capital offer diverse services, some providing an all-in-one digital onboarding experience.
- Apply for a DFM Investor Number (NIN) through the DFM mobile application or a licensed brokerage.
- Start trading:
- Begin trading through the broker’s mobile app or online platform. Ensure you are aware of DFM trading hours:
- Pre-opening session: 09:30 – 10:00
- Trading session: 10:00 – 14:45
- Pre-closing session: 14:45 – 14:55
- Trading at last: 14:55 – 15:00
- Begin trading through the broker’s mobile app or online platform. Ensure you are aware of DFM trading hours:
- Track your portfolio:
- Monitor your portfolio and trading activity via the DFM app or your broker’s platform. You can access real-time data for the latest trades and price changes on DFM and apply for the iVESTOR card for online statement access via the DFM app.
For more information, visit the DFM website.
The Abu Dhabi Securities Exchange (ADX)
The Abu Dhabi Securities Exchange (ADX) is a key market for trading securities, including shares, bonds, exchange-traded funds, and other financial instruments approved by the UAE Securities and Commodities Authority (SCA). As the second-largest market in the Arab region, ADX aligns with the UAE’s strategic development goals to build a sustainable, diversified, and high-value-added economy.
How to trade?
Trading on ADX is also a streamlined process:
- Obtain an investor number:
- Apply for an investor number through the ADX website.
- Choose and appoint a brokerage:
- Select a licensed brokerage firm from the ADX website, such as FAB Securities LLC, Shurooq Stocks & Bonds, Emirates NBD, or International Securities.
- Once you have appointed your broker and chosen your products and services, you can start trading.
- Start trading:
- Place orders to buy and sell shares, and monitor share movements through the trading section on the ADX website.
For more details, visit the ADX website.
Navigating the trading seas with DFM and ADX can be a rewarding journey towards financial growth and stability. By diversifying your investments and utilising the platforms provided by these markets, you can optimise your returns and safeguard your wealth. Remember, the key to successful investing lies in informed decisions and continuous monitoring of your portfolio.