Performance Analysis of Abu Dhabi Securities Exchange and Dubai Financial Market

Abstract

The United Arab Emirates is home to two of the most significant equity markets in the Arab world: the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM). Both exchanges have experienced substantial transformation between 2020 and 2025. This study presents a comprehensive longitudinal performance analysis of ADX and DFM using six quantitative indicators from the World Federation of Exchanges (WFE): market capitalisation, value of stocks traded, number of listed companies, number of trading days, number of transactions, and new listings. The analysis benchmarks these exchanges against the five other Gulf Cooperation Council (GCC) equity markets, Bahrain Bourse, Boursa Kuwait, Muscat Stock Exchange, Qatar Stock Exchange, and Saudi Exchange (Tadawul), to provide comparative context. Results indicate that ADX achieved exceptional growth, with market capitalisation increasing by over 323 per cent and transaction volume rising nearly elevenfold between 2020 and 2025, positioning it as the second-ranked GCC exchange by 2025. DFM exhibited consistent upward momentum, with market capitalisation increasing by 177 per cent and steady growth in trading values. The study further examines the implications of FINMA's recent recognition of DFM as a foreign trading venue and explores the strategic importance of international regulatory recognition in expanding market access. Areas for improvement are identified, particularly regarding new listing activity at DFM and the need for continued liquidity enhancement, and practical recommendations are provided. This research offers an updated, data-driven, and UAE-focused comparative framework for the literature on GCC capital markets.