Dubai and Abu Dhabi Stock Markets Show Mixed Results Amid Economic Growth

The Dubai Financial Market (DFM) has shown impressive stability in recent trading sessions, capitalizing on a surge in trading volumes. In March 2025, DFM's trading activities witnessed a notable increase, with volumes rising by 36.9% month-over-month, reaching a hefty 4.8 billion shares. Despite this uptick in trading activity, the DFM General Index encountered a decline of 1.5%, closing at 4,246.3 points. The slide was largely attributed to underperformance in the financial sector, where prominent players like Mashreq Bank plummeted by 14.6% and Dubai Islamic Bank saw a dip of 9.5%.

Amidst the pressure from the financial sector, the real estate sector emerged as a beacon of growth for the Dubai stock market. Union Properties surged forward with an impressive increase of 20.3%, and Deyaar Development wasn't far behind, posting gains of 11.5%. These figures highlight the real estate sector's critical role in stabilizing and propelling the market despite challenges in other areas.

Over in Abu Dhabi, the market painted a slightly different picture. The Abu Dhabi Securities Exchange (ADX) edged up with a modest increase of 0.1% in the FTSE ADX Index. Banking giant First Abu Dhabi Bank contributed to this positive movement, rising by 1.1%, while E& Group, noted for its telecom services, posted an increase of 1.4%. Even though some sectors like consumer discretionary and industrials noted broader declines, the overall sentiment remained buoyant with contributions from strong sectors like banking and telecom.

Look beyond the stock exchange floors, and the UAE’s economy shines brightly amidst these mixed market signals. The economy is on a stable growth trajectory, projected to expand by 4% in 2025. This optimistic outlook is fueled by non-oil sectors, with real estate and aviation being pivotal drivers. February 2025 saw Dubai's property market clock a staggering AED 41 billion in sales, underscoring the robust demand and investment interest in real estate.

In a showcasing of resilience, Dubai Aerospace Enterprise made waves with a strategic move, acquiring 17 advanced fuel-efficient aircraft for a cool $1 billion. Such investments emphasize the aviation sector’s buoyancy and the broader economic dynamism, despite ongoing global pressures. The UAE's intricate interplay between diverse sectors exemplifies a well-rounded and resilient economic structure, poised to navigate and thrive amid global fluctuations.