How to Buy Stocks in UAE for Foreign Investors: ADX, DFM, and Nasdaq Dubai Guide
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In the United Arab Emirates, ADX (Abu Dhabi Securities Exchange), DFM (Dubai Financial Market), and Nasdaq Dubai are accessible stock exchanges with high profit potential for foreign investors. To trade on these exchanges, investors must first obtain a National Investor Number (NIN) and open an investment account through a licensed brokerage firm. ADX and DFM primarily list shares of UAE-based companies, while Nasdaq Dubai specializes in international stocks and sukuk transactions. Investors can execute trades via mobile apps or online platforms. Additionally, since there are no capital gains or dividend taxes for individual investors in the UAE, these markets offer an attractive investment environment for foreigners.
Based in Dubai, DFM is a stock exchange that has adopted Islamic law (Sharia-compliant) trading principles. Shares of major companies such as Emaar, Emirates NBD, and du are traded here. It is open to foreign investors, but ownership limits apply to certain shares.
ADX is based in Abu Dhabi and is a stock exchange where large companies operating in sectors such as energy, banking, and industry are traded. Companies such as ADNOC and First Abu Dhabi Bank are listed here. As of 2024, many shares are 100% open to foreign ownership.
Nasdaq Dubai offers shares and securities of both local and international companies. Attracting investors from markets such as London, Riyadh, and Mumbai, this platform is particularly popular among large institutional investors thanks to its global reach.
Before you start investing, you need to obtain a National Investor Number (NIN) through Dubai CSD or Abu Dhabi CSD. During the application process, you will be asked to provide your passport, contact details, and sometimes proof of residence. NIN applications can usually be made online and are typically completed within 24–48 hours.
Foreign investors' passports may sometimes require address verification documents (e.g., bank statement or utility bill). There is no residency requirement in the UAE, but the process is faster for residents.
The UAE is an open market for citizens of most countries. However, restrictions may apply to investors from certain high-risk countries. For example, US citizens may not be able to access services from certain brokerage firms due to FATCA compliance.
To invest in the UAE, you need to open an account with a licensed brokerage firm. Local firms such as ENBD Securities, ADCB Securities, Sarwa, and Emirates NBD, as well as international brokers such as Interactive Brokers, offer support.
Fill out the application form and upload the required documents according to the instructions provided by your chosen brokerage firm.
Once your account is opened, your NIN number will be linked, and you can start trading on the stock exchanges.
Trading hours on UAE stock exchanges are from 10:00 to 14:45 on Sundays through Thursdays. You can execute your first trade via the mobile app, web platform, or by phone through your broker.
Some companies may have limits such as 49% or 40% for foreign investors.
However, many companies such as Emaar, ADNOC, and Etisalat allow 100% foreign ownership as of 2024.
ADNOC Gas, First Abu Dhabi Bank (FAB) Stock, Emaar Properties Stock, AirArabia Stock, Salik Stock, etc.
Foreign investors wishing to invest in such companies do not require prior additional approval.
Obtaining residency in the UAE facilitates access to local banking services and financial markets for foreign investors. A resident individual can quickly execute trades on stock exchanges such as ADX, DFM, and Nasdaq Dubai, as well as transfer funds directly through banks.
In addition, residency in the UAE simplifies the process of opening an investment account and reduces the amount of documentation required when working with local brokerage firms. For those planning to make long-term investments, residency in the UAE offers significant tax advantages and legal protection.
We provide professional consulting services for setting up a company in Dubai and investing in UAE stock exchanges. For foreign investors, setting up a company in the UAE to obtain residency is an effective way to both establish a business and enter the capital markets. Investors who establish a limited liability company (LLC) in Dubai, Abu Dhabi, or a free zone can open an investment account through this company and trade on stock exchanges as a legal entity. Investments made through the company are considered corporate investments rather than personal investments, which may offer additional legal and financial advantages. Additionally, the company owner and their family are granted residency rights, which facilitates a faster and smoother investment process with local banks and brokers.
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No. There is no capital gains tax or dividend tax for individual investors in the UAE. This makes the UAE an attractive destination from a tax perspective.
Each transaction incurs an average cost of 0.25% to 0.50%, including stock exchange commission, broker commission, and settlement fees. Fees may vary between brokerage firms. These fees may differ depending on the firm through which you purchase stocks.