UAE Stock Market Hits $1 Trillion Milestone
The stock market in the United Arab Emirates has reached a total value of $1 trillion for the first time. This increase is driven by companies linked to Abu Dhabi’s royal family, especially those connected to Sheikh Tahnoon bin Zayed Al Nahyan. He is the UAE’s national security adviser and one of the deputy rulers of Abu Dhabi. These firms now make up more than a third of the market’s total value.
The combined UAE stock market includes the Dubai and Abu Dhabi exchanges. It is now ahead of markets in Milan and Madrid, though still smaller than Saudi Arabia’s market, which is nearly $3 trillion. However, the UAE market is larger than most other emerging economies except China and India.
One notable aspect of this milestone is the influence of Sheikh Tahnoon’s companies. He chairs International Holding Co. (IHC), which has grown by an extraordinary 43,000% in recent years. IHC has transformed from a fish-farming business into a major player in various sectors, including real estate and technology. It has investments in well-known brands like Rihanna’s lingerie line and Elon Musk’s SpaceX.
IHC has a market value close to $250 billion, making up a quarter of the total UAE stock exchanges’ worth. Local investors own 88% of IHC, showing strong domestic ties to Sheikh Tahnoon’s ventures.
Sheikh Tahnoon also leads First Abu Dhabi Bank (FAB), which has recently looked into buying Britain’s Standard Chartered. Together, IHC and FAB make up over 50% of Abu Dhabi’s FTSE ADX General Index. This emphasizes the significant impact of his businesses on the financial landscape of the UAE.
Overall, the rise in the UAE stock market, supported by royal-backed companies, shows the country’s ongoing push to diversify its economy and establish itself as a global financial hub.
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