Dubai is a worldwide hub where visitors from all over the world congregate. The city provides a welcoming atmosphere for investors because to its superior infrastructure, top-notch hospitality, and abundance of attractions. There are lucrative stock market prospects in Dubai in addition to real estate and commodity investment opportunities.
You may learn how to trade stocks in Dubai and get an overview of the securities market right here.
ALL YOU NEED TO KNOW ABOUT STOCK TRADING IN DUBAI
Stock trading is managed and moderated by the Dubai Financial Market, a Shariah-compliant exchange that is governed and regulated by the UAE Securities and Commodities Authority (SCA). It provides an efficient trading platform that offers investors with the information and resources necessary to make sound investment decisions.
The Dubai Financial Market first integrated its operations with Nasdaq Dubai in 2010, giving investors access to a wider range of securities and investment options. It also enabled them to access both DFM and Nasdaq Dubai listed securities with a single Investor Number, or NIN.
Now, DFM gives you the option and freedom to carry out security, bonds and Sukuk trading in Dubai. (A sukuk is an Islamic financial certificate, which works on a similar concept to stocks but is compliant with Sharia Law.) There are some simple steps that you must complete in order to be able to perform trading in Dubai Stock Exchange. You can learn all about these steps in the next section.
How to Invest in the Stock Market?
By following a straightforward process, you can purchase stocks in the UAE.
Apply for an Investor Number (NIN)
Hire a broker
APPLYING FOR AN INVESTOR NUMBER
An Investor number, or NIN, is your identification number for the account that allows you to trade DFM and Nasdaq listed stocks. To apply for an Investor number, you are required to fill out the Investor Number Request Form and submit it with your signature, stamp and the required documentation. This is open to people of all nationalities, located anywhere in the world.
On the website of the Dubai Financial Market, you can register for an account and complete the online form via eServices. A different option is to stop by the Client Services Affairs desk at the DFM trading floor, which is open from 8:00 am to 2:00 pm, Sunday through Thursday. The processing of your Investor number occurs the same day, making this the quickest method. A third choice is to work with a broker, who will then take your paperwork and form. Your Investor number will be obtained by them from DFM.
HIRE A BROKER
Choosing a broker to open a trading account on your behalf is the next step after obtaining your Investor number from Dubai Financial Market. By looking at their portfolios and rankings, you can quickly select from a large number of licenced brokers to work with while trading stocks in Dubai.
Once you appoint a licensed broker, they will take care of all the necessary paperwork for opening an account for security trading in Dubai. After creating an account, you can instruct your broker to carry out the buying and selling of stocks on your behalf. It is wise to choose a broker who is registered with the Dubai Financial Market and Nasdaq Dubai as well so that you can aim for a more diversified portfolio.
Now, that you have your Investor number and a broker to oversee all your transactions, you can start monitoring the trading performances through the trading screens on the DFM trading floor or on the DFM website.
Together, DFM and Nasdaq Dubai bring you a wide range of investment instruments that you can choose from. These include securities, equities, bonds and Sukuk. There is a certain trading period during which you or your broker can conduct trading transactions. The trading period is classified into three slots:
- Pre-opening session (09:30 am – 10:00 am)
- Continuous trading session (10:00 am – 01:50 pm)
- Pre-closing session (01:50 pm – 02:00 pm)
If you prefer to carry out online stock trading, Dubai Financial Market and Nasdaq Dubai also have an online trading platform through the stock trading companies in Dubai. These companies bring all the real-time data and valuable information to your screens, so you can easily carry out stock trading and also monitor your trading performance.
TRACKING YOUR PORTFOLIO
By following the aforementioned steps, you are well on your way to becoming a licensed investor. However, buying and selling stocks is not what stock trading is all about. It has more to do with which stocks to buy and when to buy or sell them, which is why it is crucial for you to track your portfolio periodically.
Dubai Financial Market and Nasdaq Dubai have a wide range of eServices that are tailored to provide you with all the real-time data and relevant information you need regarding your portfolio and trading performance. By applying on the DFM website, you can get 24-hour unrestricted access to your portfolio, as well as real-time data on the DFM and Nasdaq Dubai listed securities.
And this is all we have on how to trade stocks in Dubai. With this information, you can get your trading account up and running and become a full-fledged investor in no time. You can also check out the top banks in Dubai to organise your finances and seek an expert’s guidance.
Eligibility criteria for an investor to buy stocks in UAE:
- Also eligible are non-residents
Candidates must hold a current passport.
- an Investor Number is required (NIN)
- a trading account is required
- Underage applicants must get their guardian’s signature on the application to be eligible.