The Dubai Financial Market (DFM) General Index has surged to its highest level since May 2014, closing at 5,362 points on February 14, 2025. This milestone marks a 0.8% increase, driven by robust corporate earnings and positive investor sentiment.
What’s Driving the Market Surge?
Strong performances by key companies in Dubai’s industrial and materials sectors have significantly contributed to the market’s growth.
- Salik Company: The Dubai-based toll operator reported a net profit of 1.16 billion dirhams, surpassing analyst forecasts of 1.14 billion dirhams. This led to a 3.4% rise in its share price.
- Air Arabia: The budget airline saw a 56% increase in its Q4 net profit, reaching 351 million dirhams. This strong performance pushed its shares up by 4.4%, prompting the company to raise its annual dividend to 25 fils per share.
Market Performance & Investor Sentiment
The DFM has gained 2.4% in the past week, marking its strongest weekly performance in 2025. Analysts credit this momentum to better-than-expected corporate earnings and Dubai’s robust economic fundamentals.
Abu Dhabi Market Faces Decline
While the Dubai market is thriving, the Abu Dhabi benchmark index experienced a 0.3% drop, affected by declines in:
- Adnoc Drilling
- Alpha Dhabi Holding
- Burjeel Holding, which fell 9.8% after reporting a 33% decline in full-year net profit.
Outlook for the Dubai Financial Market
With strong corporate results and increasing investor confidence, the DFM’s rally signals a positive outlook for Dubai’s economic and financial landscape. Experts predict continued growth, supported by government initiatives, strong tourism, and global investment inflows.
Investors will be watching for further developments as Dubai strengthens its position as a regional financial hub.