How to Invest in Dubai Company Stocks

The stock market in Dubai is as active as any other in the world. It is not as old as the American and European stock exchanges. However, knowledgeable investors keep their eyes on company stocks that have good earnings. Get a good return on your investment and diversify your portfolio by investing in shares of Dubai's top companies.

Research

Step 1

Learn the histories of the United Arab Emirates' two stock markets. The companies listed on the Dubai Financial Market and the (DFM) are registered in the United Arab Emirates. The Abu Dhabi Securities Market (ADX) also trades stocks from other companies based in the Middle East and North Africa (see Resources below).

Step 2

Look up the stock symbols for companies traded on the stock exchanges. There are less than 100 companies traded on the DFM. The main industries for Dubai's publicly traded companies are Construction, Banking, Commodities, Transportation, Utilities and Insurance. The ADX site list companies in Banking, Insurance, Services and Hospitality. Both sites list stocks by name, code and industry (see Resources below).

Step 3

Review recent buy and sell prices for the top companies at DFM. The stocks for these companies are only traded on this exchange. The prices are in UAE currency, the dirham. Use the XE online currency converter to estimate your cost in other currencies (see Resources below).

Step 4

Begin by finding companies in sectors that you have some knowledge of or have shares in already. This will make it easier to compare earnings and potential growth.

Step 5

Read daily and monthly bulletins published by DFM to get familiar with trading patterns. This exchange operates between 10 a.m. local time to 2 p.m. Sunday through Thursday, except on UAE holidays. See the investor relations link below for holidays.

Step 6

Research the earnings history of a few companies. The Dubai exchange started its operations in 2000. However, many of the companies whose stocks are traded have been in business much longer than Dubai's stock markets.

Step 7

Check for companies that allow foreign shareholders. The London Conference presentations by companies open to foreign investment is a good starting place. Get a list of companies and prospectuses in English from this link (see Resources below).

Step 8

Check for companies that allow foreign shareholders. The London Conference presentations by companies open to foreign invest is a good starting place. Get a list of companies and prospectuses in English from this link.

Trade

Step 1

Register for a "Investor Number" by contacting the exchange's Investor Services Desk. The DFM and ADX will use it identify all of your shares and trades in the markets' Central Depository System (see Resources below).

Step 2

Select an authorized broker who can trade on both exchanges to handle your trades. This is mandatory.

Step 3

Choose a broker with electronic trading capabilities from the DFM site's downloadable broker rankings (see Resources below). All approved brokers have offices at the exchange and identification.

Step 4

Place orders by phone or email, through your broker, using your IN.

Step 5

Subscribe to the Dubai stock exchange RSS feeds to watch the market.

Step 6

Join English language forums to discuss trends and get alerts. Track your portfolio and get additional insight (see Resources below).

Tip

ADX has the investor number application online; the DFM does not. Request the "Investor Guide" brochure from DFM.

resources