How to Invest in UAE Stock Market? (2022 Beginner Guide)

It is crucial to understand how trading works and the market condition before you invest in stocks

feature image-how to invest in uae stock market-Laptop with stock market illustration with UAE Flag at bottom

If you are looking for how to invest in UAE stock market? Then you have landed in the right place. Online trading platforms offer the best bang for your buck when investing in stocks.

Not only will you be able to invest from practically anywhere. But you’ll also have a wide range of stocks at your disposal.

Before making a UAE stock market investment, it’s important to consider crucial components such as the associated fees, commissions, and other requirements. In addition, you should also be aware of other conditions like overall market trends and investment objectives.

In this Dbd guide, we have a detailed guide on investing in the UAE stock market. Furthermore, we have compiled a list of excellent platforms for acquiring stocks. Also, we have discussed topics of how to start investing and things to consider while you invest.

How to invest in UAE stock market?

inarticle image-how to invest in uae stock market

Many who are considering investing in the stock market often ask this question. The United Arab Emirates (UAE) has many options for investors who want to invest their money. The UAE stock market is highly desirable for foreign investment compared to other global markets.

You can follow the steps mentioned below if you are a beginner and want to invest in stock.

Step 1: Create a trading/broker account

The first step to trading is opening an account with a broker. When you do this, they will ask for some of your personal information like your name, address, birth date, and how to contact you. The amount of time it takes to verify your account varies depending on the broker.

To be eligible for trading in the UAE, you need an investor identification number (NIN). You can get this number from the DFM app, Investor Affairs at Dubai CSD, or through a trading member.

Step 2: Deposit into your account

Before you begin to invest stocks in Dubai, consult your broker to see how much money you will need to deposit. Each broker has a different policy for minimum deposits, so this number could vary depending on whom you use.

There are many ways to deposit, such as with a check, cash, or bank transfer. The simplest method is linking your bank account to your brokerage account, so you can easily transfer money between the two.

Step 3: Do your market research

Do your market research first, especially if you are a beginner. This means looking at factors such as revenue, net income, P/E ratio, ROE, and more for the company you want to invest in.

It’s essential to keep up with the latest stock market news to save money if something unexpected happens. Before you start trading, it’s a good idea to set some financial goals for yourself. That way, you’ll know which coins or stocks will be best for you in the long run.

Step 4: Begin trading

We recommend a simple entry and exit strategy if you’re new to UAE stock market investment. And as you gain experience in the market, increase your transaction volume too.

Being a successful trader means being able to adapt to any situation. The market is constantly in flux, so you need to be prepared for anything that might happen. That includes having strong risk management skills and knowing your trading strategy inside and out.

Best online brokers to invest in the UAE stock market

1. eToro 

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eToro is an investment network that helps people learn more about finance and invest smarter. With eToro, you can connect with other investors to get opinions and insights on financial markets, investing strategies, and more.

This company makes online trading available to everyone by making it simple and easy to understand. This way, people will not need multiple platforms anymore. Similarly, their social collaboration platform enables users to connect and learn from each other, as well as receive investor education.

2. xtb 

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xtb is a large stock exchange-listed FX & CFD broker with nearly 20 years of experience. With offices in several countries spanning the globe, such as the UK, Poland, Germany, France, and Chile.

This platform adheres to the global standards by renowned organizations like FCA, KNF, CySEC, and FSC. Similarly, users can trade using their award-winning, easy-to-use platform, xStation 5.

The platform is high-speed and can be used on your smartphone too. So whether you’re a seasoned trader or just starting, xtb has the tools you need to succeed.

3. Swissquote 

inarticle image-how to invest in uae stock market-Swissquote 

Swissquote Group Holding Ltd. was founded in May 2000 and listed on the SIX Swiss Exchange. In 2001, the company obtained a banking license and became regulated by FINMA. [1]Swissquote, “History, … Continue reading

Moreover, Swissquote adheres to high standards for online financial services, transparency, and deposit security. Consequently, clients can trade with low latency on prime servers in excellent locations for the best execution.

Also, clients’ deposits are safe and secure. Therefore, Swissquote is a reliable and trustworthy provider of online banking services.

4. FOREX.com 

inarticle image-how to invest in uae stock market-Forex

Forex is a company that is publicly traded on NASDAQ. It has $10.9 billion in assets and provides users with everything they need to connect to international markets. [2]FOREX, “About Us, … Continue reading

StoneX Group Inc. (NASDAQ: SNEX) offers forex services as part of its commitment to providing innovative solutions for the global financial markets. Customer deposits are kept separate from the company’s operating funds and spread out among multiple banks to protect customers wealth. [3]FOREX, “Protecting Your Fund, … Continue reading

5. StromGain

inarticle image-how to invest in uae stock market-StromGain

StormGain is the best platform to invest in crypto. With a single tap on this app, you can buy, store, trade, exchange, learn about crypto, and earn it. [4]StormGain, “Home, … Continue reading

Similarly, the platform is designed for success in both good and bad market conditions. You can trade established cryptocurrency pairs. Plus, many order types and software are available, including buy/sell signals created specifically for users.

6. Kraken 

inarticle image-how to invest in uae stock market-Kraken 

Kraken is a popular cryptocurrency exchange that often takes one of the top spots for the best places to buy and sell digital currency. This is because it has excellent customer service, inexpensive fees, various funding options, and high-security standards. [5]Kraken, “Why Kraken, https://www.kraken.com/why-kraken#:~:text=As%20one%20of,revolution%20since%202011.”

Kraken is the perfect platform for anyone looking to start cryptocurrency trading. They offer a wide range of currency pairs to choose from and all the tools and features you need to grow your portfolio. [6]Kraken, “What We Do, https://www.kraken.com/why-kraken#:~:text=Empowering%20investors,Supporting%20institutions”

7. Crypto

inarticle image-how to invest in uae stock market-Crypto

If you’re looking for a convenient way to buy, sell, and hold cryptocurrency, Crypto.com is the place for you. Also, this app allows you to do everything from one place. You can also use their prepaid card to spend your cryptocurrency anywhere that accepts Visa.

Trading fees are either charged (positive fee%) or rebated (negative fee%) on every transaction. You must have CRO to take advantage of these benefits.

Additionally, your trading fee rates will be updated every hour. This follows the evaluation of your Trading Volume, Maker Activity, and amount of CRO staked. Depending on the amount of CRO your stake, you could be eligible for benefits like discounted fees and 0% maker fees. [7]Crypto, “Fees and limits, https://crypto.com/exchange/document/fees-limits#:~:text=Other%20Considerations,time%20to%20time.”

Things to consider while you make UAE stock market investment

It is essential to have a clear understanding of the UAE stock market investment and the risks involved before you start. Here are some things to keep in mind.

Create a trading account

Before beginning to trade, you must open a trading account and provide personal information such as your name and contact details. Then, you will need to make an initial deposit to finance your account.

However, you must have an investor identification number (NIN) to be eligible to invest money in UAE stock market. You can get NIN via your national ID or passport. In addition, you will also need to provide your bank account details to make deposits and withdrawals.

For your brokerage or trading, the firm must be registered in the DFM (Dubai Financial Market) and SCA(UAE Securities and Commodities Authority). Similarly, investing and trading on registered platforms will prevent any legal trouble.

Setting budget

When starting to trade, it’s essential to set a budget and figure out how much money you’ll be willing to invest in the platform.

The easiest way to do this is by linking your bank account to your brokerage account. After your first deposit has gone through, you can start to start to invest in UAE stock market online.

Learn about the basics of trading

Before you invest money in the UAE stock market, you need to understand trading. Trading is when you buy or sell assets like stocks and bonds. For example, if somebody thinks the market will improve, they will purchase stocks. Or if somebody thinks the market is worsening, they would sell their stocks.

By studying how to read financial markets, you can learn how to trade them. This understanding comes from analyzing charts and price action and using technical and fundamental analysis.

Your investment account will likely retain money if you have the proper basic knowledge. The same goes for retail investors trading CFDs without any practice.

Train using a trading simulator

A stock market simulator is software replicating the stock exchange’s conditions. It helps users exercise investing in virtual portfolios of stocks and other securities without worrying about actual money risks.

A trading simulator lets you try out investment strategies in the financial markets before investing money. Many online brokerages and websites include them so you can get comfortable trading before using real capital.

Begin trading

You can start to invest in the Dubai stock market after you finish each of the steps listed earlier. If this is your first time trading, we suggest using a basic entry and exit strategy. As you gain experience and an understanding of the market, you can gradually increase your goals and transaction volume.

A great trader always thinks ahead. The market is dynamic, so you must be ready for whatever comes your way. To succeed in trading, one must have excellent risk management skills and a well-thought-out trading strategy.

Track your portfolio

It would help if you tracked your portfolio periodically to determine your stocks’ performance. This will help you determine if you need to make any changes to your portfolio. You can do this through the DFM app or the broker’s platform.

This platform lets you see your portfolio and trading activity on the DFM app or the broker’s platform. You can track recent trades and price changes of securities listed on DFM and Nasdaq Dubai via the DFM App or Market Watch.

You can improve your investing experience by applying for an iVESTOR card. This card will give you access to online statements and controls. The DFM App lets investors track their stock portfolio and transactions in real time. [8]DFM, “Track your portfolio, https://www.dfm.ae/investors/how-to-trade#:~:text=View%20and%20track,via%20DFM%20App.”

FAQs

What type of stocks can I buy in UAE?

You can easily buy national and international stocks in the UAE. The Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) are stock exchanges for national trading. At the same time, NASDAQ Dubai is a stock exchange for international trading.

How to invest in the US stock market from UAE?

To buy US stocks in UAE, you need a broker account with a platform that supports international trading. For starters, NASDAQ Dubai supports both national and international stock exchanges.

How to invest in Abu Dhabi stock market?

To buy US stocks in UAE, you need a broker account with a platform that supports international trading. For starters, NASDAQ Dubai supports both national and international stock exchanges.

How to invest in Abu Dhabi stock market?

To invest in the Abu Dhabi stock market, you need an investor number from Abu Dhabi Securities Exchange (ADX). Following that, you can select a broker and start to trade.

Can I buy international stocks in UAE?

Yes, you can buy international stocks in UAE. However, it would help if you had a broker that supports international trading.

Can foreigners invest in UAE stock market?

Yes, foreigners can invest money in the UAE stock market. However, you need a valid passport copy and an ID card to obtain the Investor number first.

Related Info


Final thoughts

The UAE is an excellent place to trade stocks because the market follows standard rules and offers investors many opportunities. However, it is important to remember that stock investing always has some risk.

Before you invest money in uae stock market, learn about the basics and the risks involved. This will help you make intelligent decisions when investing your money into stocks.

We hope to have answered all your queries on how to invest in UAE stock market through this Dbd guide.

Sharing this blog will help educate others, so please consider doing that. Lastly, if you want to see more content like this in the future, follow our blog.

About the author

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Arijit Negi
Senior Contributor | + posts

Arijit Negi is a Senior Contributor at DbdPost. He has been living in Dubai for the last 18 years. He completed his degree in Master of Arts in Journalism from the University of Mumbai. Arijit's writing focuses on providing helpful guides and information for ex-pats living in UAE, as well as visitors to the UAE.

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