Did you know that the trade market in Dubai is recognized as one of the world’s most advanced and influential? Dubai Financial Markets (DFM) has gained recognition for its exceptional regulation and commitment to international best practices. It serves as a gateway to the Middle East and North Africa (MENA) region, offering a welcoming and investor-friendly environment.
With the wholehearted support of UAE authorities, potential investors receive valuable assistance, ensuring a smooth start to their trading journey. Whether it’s obtaining essential documentation or starting your trade in Dubai.
Join us as we delve into the details of trading in the United Arab Emirates, empowering you to embark on your business ventures confidently on the dynamic DFM trading floor.
Why trade in Dubai?
Investing in Dubai and the Dubai Financial Market offers several compelling factors that ingrain confidence in investors:
Strong Economy:
The United Arab Emirates boasts a highly diversified economy, with non-oil sectors contributing around 72% to its GDP. Unlike many other Middle Eastern countries, the UAE’s economy is resilient and offers stability. Additionally, the nation’s per capita income is among the highest globally, signaling prosperous opportunities.
Pro-Business Environment:
The UAE consistently ranks favorably in the International Doing Business Index, a World Bank study evaluating business regulations and environments. In 2020, it secured 16th position out of 190 economies. The country’s business-friendly climate, minimal taxes, specific company setup procedures, and excellent infrastructure support facilitate entrepreneurial initiatives.
Lucrative Opportunities:
Whether you prefer online or offline trading, the UAE provides diverse avenues to generate income. The nation’s thriving business landscape offers ample possibilities to explore and capitalize on various opportunities.
By considering these significant elements, investing in Dubai and the Dubai Financial Market becomes an attractive choice for discerning investors seeking a robust and promising investment destination.
Dubai and the UAE extend a warm welcome to foreign investors
Embracing them with open arms through a range of investor-friendly policies that touch the hearts of entrepreneurs:
- Ownership Opportunities: UAE Ministry of Economy empowers foreign investors by allowing them to fully own their UAE companies. This signifies the trust and belief the government places in the entrepreneurial spirit of individuals, providing them with the freedom to bring their visions to life and shape their own destinies.
- Diverse Workforce: Dubai and the UAE proudly celebrate their multicultural society, with foreign nationals contributing significantly to the workforce, comprising around 80% to 90% of the total. This rich diversity not only creates a harmonious environment but also fosters a vibrant exchange of cultures, ideas, and perspectives, making every entrepreneur feel at home in this melting pot of talent.
- Global Workweek Alignment: Recognizing the importance of seamless global business operations, the UAE government has transitioned to a workweek for state-run offices to align with international norms. By adopting a Monday-to-Friday schedule, they enable businesses to connect with partners worldwide more effectively, ensuring smoother collaboration and strengthening bonds across borders.
- Favorable Taxation: The UAE’s investor-friendly tax regime adds a touch of relief for entrepreneurs. With no personal income tax (except for a flat 5% value-added tax), individuals can retain more of their hard-earned profits. This allows them to invest back into their businesses, nurture growth, and create positive impacts within their communities.
Different types of trade markets in Dubai and what are the available indexes
Certainly! In Dubai, you’ll discover a captivating array of trade markets that cater to different interests and needs. Let’s take a closer look:
- Gold and Jewelry Market :
As you stroll through the bustling streets of Dubai’s Gold Souk in Deira, the vibrant displays of gold, diamonds and precious gemstones will catch your eye. The market’s rich heritage and craftsmanship make it a treasure trove for those seeking exquisite jewelry pieces. - Textile Market:
Experience the lively and fragrant ambiance of Naif Souk and Satwa Souk. These vibrant markets are filled with an abundance of vibrant fabrics, flowing garments, and stunning accessories. Whether you’re seeking traditional Arabic attire or trendy fashion choices, you’ll discover a wide range of options to perfectly complement your personal style. - Perfume Market:
Enter the captivating Perfume Souk in Deira, where delightful fragrances fill the air. Let yourself be carried away by the countless scents and embark on a journey into the realm of perfumes and essential oils. Explore a wide range of distinctive blends, traditional Arabian attars, and enchanting aromas that truly mesmerize the senses. - Spice Market:
Lose yourself in the aromatic Spice Souk of Deira, where the air is filled with the heady scent of spices and herbs. Explore the colorful stalls brimming with cumin, cardamom, saffron, and other exotic ingredients. Engage with the friendly vendors as you seek the perfect flavors to enhance your culinary creations. - Electronics Market:
Feel the excitement and technological buzz at places like Al-Fahidi Street and Al Ain Center. Here, you’ll find a hub of electronics trade, from the latest gadgets to cutting-edge devices. Engage with knowledgeable salespeople who can guide you through the world of technology.
STEP-BY-STEP PROCESS TO START TRADING IN DUBAI
Apply for a DFM Investor Number (NIN)
There are three ways you can apply for a DFM Investor Number (NIN) one is through Dubai Financial Market (DFM) app and the second is via Dubai CSD (Dubai Central Securities Depository LLC) and the last one is with the help of a licensed broker.
Apply for a DFM Investor Number Via Dubai Financial Markets (DFM) app
To apply for a DFM Investor Number through the Dubai Financial Markets (DFM) app, you can conveniently start the process by downloading the official DFM mobile application on your smartphone or tablet. Once you have the app, simply navigate to the account registration section, where you’ll be guided through the application steps.
Take a moment to provide your personal details, such as your name, contact information, and identification information within the app. Remember to double-check the accuracy and completeness of the information you provide. To proceed, you’ll also need to upload the necessary identification documents, such as a copy of your passport or Emirates ID, as instructed by the app. It is essential to ensure that the documents are clear and legible before submission.
After you’ve completed the application, it’s time to sit back and let DFM review and process your submission. While waiting for their response, be assured that the DFM is working diligently to assess your application. Once approved, you’ll receive your unique DFM Investor Number. Use this number to open a trading account with a registered brokerage firm.
Apply for a DFM Investor Number Via Dubai CSD (Dubai Central Securities Depository LLC)
To apply for a DFM Investor Number through Dubai CSD, the process involves a few simple steps. First, get in touch with Dubai Central Securities Depository (Dubai CSD) and gather the necessary identification documents. This typically includes a valid passport or Emirates ID. Complete the application form provided by Dubai CSD, ensuring that all the required information is accurately filled in. Once the form is completed, submit it to Dubai CSD as per their instructions. Afterward, you’ll need to patiently wait for Dubai CSD to process your application. During this time, they will review the provided information and conduct the necessary checks.
Once your application is approved, Dubai CSD will assign you a unique DFM Investor Number. This number will serve as your identifier for trading on the Dubai Financial Markets (DFM). With your DFM Investor Number, you can proceed to open a trading account with a registered brokerage firm.
Apply for a DFM Investor Number Via a licensed broker
If you prefer a more convenient approach, you can consider registering with a licensed brokerage firm that will handle the application process on your behalf. It’s important to choose a brokerage firm from the list of licensed firms approved by DFM to ensure a reliable and trustworthy service. The application procedure and required documents remain the same as mentioned earlier.
Your chosen broker will provide you with the official NIN request form, which you will need to complete and submit through them. This option allows the brokerage firm to assist you throughout the process, ensuring that all necessary steps are taken care of efficiently and accurately. By opting for this option, you can rely on the expertise of professionals to guide you through the registration process smoothly.
START TRADING IN DUBAI
Listed equities :
DFM and Nasdaq Dubai provide a wide range of 116 listed equities for you to explore and trade. On DFM’s website, you can find detailed market profiles and pricing data for each equity, offering valuable information such as news updates, top shareholders, daily summaries, historical data, financial reports, general meeting details, key corporate actions, and trading summaries. By accessing this information, you can make informed decisions and stay informed about the dynamic world of equity trading in Dubai.
Derivatives:
DFM offers seasoned investors the option to trade derivatives or futures, providing an opportunity to diversify portfolios and protect against price changes. With partnerships with eight derivative trading members, three market makers, and four technology partners, DFM ensures a robust trading environment. Investors can purchase contracts with expiry dates of 1, 2, or 3 months, allowing for flexibility in trading strategies. This feature enables investors to explore derivative trading as a means to enhance their investment approach and effectively manage market volatility.
Index Funds(ETFs):
DFM allows you to trade Exchange Traded Funds (ETFs), which are trading instruments backed by underlying assets and commodities. The advantages of trading ETFs include low management fees, lower minimum investment requirements compared to mutual funds, and excellent liquidity. This makes ETFs a cost-effective and accessible choice for investors looking to diversify their portfolios and take advantage of market opportunities.
Fixed-income securities(Bonds)&Sharia-compliant bonds(Sukuk)
Fixed-income securities (Bonds) and Sharia-compliant bonds(Sukuk) are great investment options if you’re looking for a safe and low-risk return. Typically, you can expect returns between 3% and 7% from Sukuk and bonds. Currently, DFM has listed 175 Sukuk or Islamic bonds and 97 conventional bonds, offering a wide range of choices for investors. It’s an opportunity to diversify your investment portfolio and explore options that suit your risk tolerance and financial objectives.