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July saw the Dubai Financial Market (DFM) General Index rise past the 6,000 level, reaching a 17-year high.
This milestone comes despite persistent headwinds in the global economy, including trade disputes, inflationary pressures and geopolitical uncertainty. The index’s surge has highlighted Dubai’s strategic reforms and strong stock performance, fueling optimism in investor confidence and giving it a unique position among global markets.
Record Breaking Performance
The DFM General Index has risen over 22% YTD, reaching 6,113 at the time of writing in July 2025. This achievement, the highest since 2014, was driven by strong performances from blue chip stocks in key sectors such as utilities, banking, and real estate. ⁽¹⁾
Trading volumes surged, with foreign investments pouring in, which contributed nearly 50% of market activity in Q2. This is also considered one of the highest participation rates in the GCC. ⁽²⁾
Sector Breakdown
Real Estate and Tourism Boom
Emaar and Deyaar were the main drivers of the real estate rebound.
Emaar reported strong Q1 earnings, with property sales increasing by 42% and revenue by 50%. This strong performance was driven by a massive AED 127 billion in sales orders waiting to be filled, with credit rating agencies upgrading Emaar due to its low debt and strong margins.
Deyaar’s Q1 earnings showed profits rising 7.6%, with a 20% increase in revenue and paying dividends of AED 0.05. ⁽³⁾
Dubai’s real estate market, which is highly correlated with the stock market, saw a rise in prices of 12% YoY in prime areas like Downtown, Palm Jumeirah and Dubai Hills.
New visa reforms, which include long-term residency for property investors, have continued to bring in foreign investment. ⁽⁴⁾
The tourism sector also saw a rebound, with big events such as the Dubai Shopping Festival and Dubai Expo showing a record number of visitors in both Q1 and Q2. This factor has boosted the retail, hospitality and travel sectors, which also supported investor optimism.
Utility Sector Shows Growth
Utility titans like DEWA and Empower have emerged as leaders in the sector, with DEWA reporting a profit increase of 14% in the first half of 2025, while Empower reported double-digit gains driven by high demand for its cooling products especially due to record temperatures in Dubai. ⁽⁵⁾
These stable and dividend-paying stocks have become attractive for investors seeking safe-havens in a volatile global economy.
Bank Stocks Show Resilience Despite NBD Profit Dip
UAE banks have been benefitting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years.
Emirates NBD reported a profit dip of 9% in the first half of 2025, reporting AED 12.5 billion, which was impacted by new tax rate hikes despite strong credit and deposit growth that supported income by 12% to AED 23.9 billion. ⁽⁶⁾
Despite the profit dip, Emirates NBD stock is up 21% YTD. Liv Digital Bank, a subsidiary of Emirates NBD, has also launched a retail cryptocurrency offering via its Liv X mobile banking app. Emirates NBD is the largest bank in Dubai and the second biggest in the UAE. ⁽⁷⁾
Smart Fiscal Policies Amid Global Uncertainties
As global markets face tariff-driven inflation concerns and trade disruptions, the UAE has managed to maintain economic stability through diversification in trade and diplomacy.
The central bank of the UAE has managed to balance interest rates in order to control inflation without impacting growth.
The AED’s peg to the USD has ensured currency stabilization, with also no taxes on income and capital gains on stocks continue to attract foreign investments.
UAE’s Neutrality
The UAE has also maintained neutrality in a turbulent world as trade tensions between the US, China and the EU has continued to fuel global uncertainty.
Due to its strong government, trade agreements and a powerful hub for logistics and finance, the UAE has protected itself from sanctions, FX volatility and policy shocks. This stability also combines with strong corporate earnings, which has backed the UAE’s status as a safe-haven as global tensions continue.
