How to Buy Stocks in UAE for Foreign Investors: ADX, DFM, and Nasdaq Dubai Guide

How to Buy Stocks in UAE for Foreign Investors: ADX, DFM, and Nasdaq Dubai Guide

The United Arab Emirates (UAE) has one of the most active financial markets in the Gulf region. Stock exchanges such as the Abu Dhabi Securities Exchange (ADX), Dubai Financial Market (DFM), and Nasdaq Dubai offer foreign investors a wide range of investment instruments, including stocks, sukuk, and ETFs. In this guide, we take a step-by-step look at how foreign investors can invest in UAE stock exchanges.
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As a foreign investor, buying and selling shares on the ADX, DFM, and Nasdaq Dubai stock exchanges

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.

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General Information About the UAE Stock Exchanges

What is DFM (Dubai Financial Market)?

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 (Abu Dhabi Securities Exchange) Features

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: Opportunities for International Investors

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.

 

Required Documents and Conditions for Foreign Investors in Dubai

How to obtain a National Investor Number (NIN)?

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.

Passport, Residence, and Other Documents

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.

Which country's citizens can invest?

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.

 

 

 

Steps to Buy Stocks on UAE Stock Exchanges

Selecting a Licensed Brokerage Firm

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.

Opening an Investment Account

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.

Placing Your First Order and Trading Hours

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.

 

ADX, DFM, and Nasdaq Dubai Foreign Ownership Rules

What are the Percentage Restrictions?

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.

Which Companies Are Open to 100% Foreign Investment?

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.

 

 

 

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Investing in UAE Stock Exchanges by Obtaining Residency

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.

 

Establishing a Company in Dubai to Invest in UAE Stock Exchanges

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.

Set up your own company with World Company Setup and take your investment to a professional level!

 

Taxation and Expense Rates in UAE Stock Exchanges

Is there capital gains tax in the UAE?

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.

Commission and Transaction Fees in UAE Stock Exchanges

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.

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