Dubai, in this land of opportunities, individuals who wish to gain wealth through stock market trading may do so. Savings accounts, bonds or real estate may not be as feasible as stocks when considering the returns that any investor could earn from the market. In fact, trading in stock market is deemed one of the finest ways in Dubai, UAE to make money. Nonetheless, before venturing into this exciting yet challenging world of trades, you need to know about the stock market and how is it done in Dubai.

Major Stock Exchanges of UAE

Stock market trading is done by traders just like in any other country, where the buyer is purchasing the stocks with the hope of making money by earning dividends or by selling them at a higher price. In Dubai, UAE, investors could trade their stocks from chiefly three major stock exchange markets, namely Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX) and NASDAQ Dubai.

• Dubai Financial Market (DFM): Governed and regulated by the UAE Securities and Commodities Authority, the Dubai Financial Market offers a competent trading platform, where investors buy and sell their stocks in accordance with Sharia Law. Investors could also make better investment decisions as the platform would provide them with the right information and resources to trade appropriately. Even though DFM was established way back in 2000, it was transformed into a public joint-stock company in 2006. The trading time of DFM is from 10:00 am up to 1:50 pm and functions from Sunday to Thursday.
• Abu Dhabi Securities Exchange (ADX): In this stock exchange, investors could trade the stock of UAE companies from varied types of trading in stock market in Dubai, much like different sectors such as services, banking, insurance, hotels and industries. Unlike DFM, this stock exchange does not focus on companies from other countries. The Securities and Commodities Authorities regulate the Abu Dhabi Securities Exchange. ADX was established in 2000.
• NASDAQ Dubai: Unlike DFM and ADX, NASDAQ Dubai concentrates on investment assets such as bonds, REITs and stock from, India and some North African countries. Their regulation is done by Dubai Financial Services Authority. The trading time is from 10:00 AM to 02:00 pm from Sundays to Thursdays.

Procedures to buy stocks in the UAE

Once filling out the investor number form, which can be done either offline or online, you may register your investor number (NIN). Registration has to be done after attaching the concerned documents such as your Family book, Passport, UAE National ID and Residential Visa. The set of documents required may vary with respect to your broker.

The next step is to find a reliable stockbroker. Investors must ensure that the stock broker is registered at any of the above-mentioned stock exchanges in Dubai. Once visiting them, you may create a trading account.

Now with the investor number (NIN), that you have made, you may do your stock market trading Dubai, UAE. The performance of your holdings can be tracked at the Sensex of the stocks of the company by using certain credentials. With the right guidance from your licensed broker, you may buy and sell your stocks cautiously and earn a profit.

Bottom Line

Prior to buying any stock, investors are always recommended to study and analyse the market. The volatility of stock markets could be higher at the time, which makes them risky. Therefore, traders are also suggested to keep you updated by continuous tracking of their stock. If done sensibly, the stock market can help you to gain wealth like no other.