UAE Equity Markets Soar as Shariah-Compliant Stocks Drive 27% 2024 Gain and 18% YTD 2025

The UAE’s equity markets have emerged as a focal point for investors in 2025, driven by robust returns from Shariah-compliant stocks. The DFM General Index, Dubai’s key benchmark, rose over 27% in 2024 and gained an additional 18% year-to-date in 2025, outpacing global peers. This surge spans sectors including financials, real estate, and infrastructure, with ethical investing principles amplifying the appeal of Shariah-screened assets. Josh Gilbert, Market Analyst at eToro, attributes the momentum to rising demand for ethically aligned opportunities, stating that UAE Islamic stocks are attracting regional and international capital seeking both growth and responsible investing [1].

Key performers include Salik, Dubai’s toll-gate operator, whose shares have surged approximately 80% including dividends over the past year, and Parkin, the public parking company, which has seen its stock price jump over 200% since its 2024 IPO. The latter’s defensive revenue model has drawn investor interest, particularly in a high-interest-rate environment [1]. In financial services, Abu Dhabi Islamic Bank (ADIB) has delivered gains of over 98% including dividends, bolstered by digital transformation and expanding Shariah-compliant finance demand. Amlak Finance, a home financing provider, has more than doubled in value over the same period, reflecting Dubai’s revitalized property market [1].

The real estate sector has also contributed to the rally. Union Properties, a developer undergoing restructuring, has seen its shares rise over 100% year-to-date in 2025, securing its position as one of the DFM Index’s top performers. This trend underscores broader confidence in UAE equities, supported by macroeconomic resilience. The UAE’s real GDP growth is projected to reach 4.4% in 2025 and 5.4% in 2026, while high-profile IPOs like Parkin have injected liquidity and visibility into the market [1].

The DFM and ADX now host a significant portion of Shariah-compliant stocks, reflecting the UAE’s role as a global Islamic finance hub. These instruments cater to a dual audience: conventional investors seeking high-growth opportunities and ethical investors prioritizing adherence to Islamic principles. As the UAE diversifies its economy and introduces new listings, the appeal of these stocks is expected to deepen.

The market’s performance highlights a confluence of factors—strong fundamentals, structural reforms, and ethical investment trends—that position UAE equities as a compelling destination for capital. With regulatory frameworks supporting transparency and innovation, the country’s capital markets are likely to remain a magnet for global investors seeking exposure to a dynamic, ethically driven growth story.

Source: [1] [Shariah Stocks Turn UAE Markets into the Year’s Hottest Trade] [https://coinmarketcap.com/community/articles/6880b29a9a145369844a9cdc/]