Foreign investors played a pivotal role in the Dubai Financial Market (DFM) in 2024, accounting for 50% of all trading activity and making up a staggering 85% of the total registered investors, according to a recent HSBC report.
This surge in international participation reflects Dubai’s growing status as a global financial powerhouse, reinforcing its goal to rank among the world’s top four financial hubs.
The DFM also outperformed the broader MSCI Emerging Markets Index, delivering an annualised return of 4.9% in US dollar terms, significantly higher than the EM benchmark’s 2.8%.
The Dubai International Financial Centre (DIFC) continues to expand, with a 16% year-on-year increase in wealth and asset management firms, bringing the total to 410. Notably, 75 hedge funds now operate within DIFC, 48 of which each manage over $1 billion in assets.
Dubai also made a notable mark on the global IPO scene, contributing 2.2% of total IPO volumes and hosting the largest tech IPO of 2024, Talabat, the popular grocery and retail delivery platform.
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“Investor appetite for IPOs remains robust, often reaching record-breaking levels,” said Samer Deghaili, Co-Head of Investment Banking for MENA and Türkiye at HSBC. “Dubai is cementing its status as a leading debt capital markets hub, providing issuers with flexible fundraising options in both local and foreign currencies.”
Chinese companies are increasingly turning to Dubai’s capital markets, with their debt listings exceeding $22 billion by the end of 2024. Meanwhile, the total value of outstanding sukuk listed on Nasdaq Dubai and the Dubai Financial Market climbed to $97.8 billion.
Sukuk issuances also saw strong growth, jumping 42% year-on-year to $4.71 billion in Q1 2025 and representing 76% of all debt capital market activity on Nasdaq Dubai.
HSBC continues to lead the UAE’s IPO landscape, overseeing 65% of the total IPO deal value between 2022 and 2025 (YTD). The bank served as Joint Global Coordinator on two of the three IPOs listed on the Dubai Financial Market in 2024, introducing new mechanisms like post-listing price stabilisation during Parkin’s privatisation.
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