How to Trade in Dubai?
Did you know that Dubai is home to one of the most advanced and powerful stock markets in the world? There are a few things to think about if you are thinking about trading in Dubai. The Dubai Financial Market (DFM), which was founded in 2000, is one of the Middle East and North Africa (MENA) region’s best-regulated markets and has a strong commitment to international best practises.
The UAE authority supports potential investors to help them get started with documentation and trading accounts in addition to a well-regulated and investor-friendly business climate.
Today, we will go over everything you need to know to start trading in UAE so you can launch your business endeavours on the DFM trading floor.
Reasons to Trade in Dubai
A Robust Economy Pro-Business Climate
United Arab Emirates has one of the most diversified economies in the world, with a non-oil GDP contribution of roughly 72%, unlike many other Middle Eastern nations. The UAE also has one of the highest per capita incomes in the world, and thanks to significant infrastructural development milestones, the nation is rapidly developing into an international businesshub.
The International Doing Business Index, a comparative and ongoing study by the World Bank to assess a country’s business environment and regulations, ranked the UAE16thoutof190economiesin2020.
The nation also has a highly businessfriendly environment with almost no taxes, simple company incorporation, and topnotch infrastructure. Whatever your trading hours may be, the UAE also provides a variety of opportunities to make money onlineoroffline.
TheUAEMinistryofEconomy nowpermitsforeign investorstoownafull100% oftheirUAEcompanies. 01 Ownership: Tobetteralignwithglobal tradeandbusiness,theUAE governmenthaschangedthe workweekforstate-runoffices fromSundaytoThursdayto MondaytoFridayasof2022. 03 Workweek: Currently,between80%and 90%oftheUAE’sworkforceis madeupofpeoplefrom othercountries. 02 Foreign nationals: TheUAEhasoneofthemost lenienttaxlawsintheworld becauseitdoesnotimpose personaltax,withtheexception ofaflat5%value-addedtax. 04 Taxation: Attracting Foreign Investors with Open Arms
DFM(DubaiFinancialMarket) NasdaqDubai TheDFMGeneralIndexisacollectionofindicesthatdepictstheperformanceofthe UAEstockmarket. Onlyshariah-compliantcompaniesfromDFMS&P/HawkamahareincludedintheDFM ShariahIndex(DFMSI). TheUAEESGIndex(UAEESGI)includestop-performing,sustainablebusinesses. Therearetwofinancialmarketswhereyoucantradesecurities,stocks,Sukuk,orbonds thatadheretoshariah.Marketsinclude: MostofthebusinessesandcompaniestradedontheDubaiFinancialMarketarebasedin theUAE.TheNasdaqDubai,incontrast,functionsasaglobalstockandfinancialmarket thatenablesyoutotradebothinternationalandlocalinstruments. InDubai,companieslistedontheDFMareincludedinthreeimportantstockindices.
in Dubai: Markets and Indexes Available
Trading
Information for Trading UAE Shares When trade in uae, you can access transparentpricingandindustrydataviathe app or website of your preferred broker. Additionally, the most dependable and upto-date data source for trading stocks in the UAE is the DFM App, which is accessible on GooglePlayandtheAppleAppstore. Each month, DFM publishes and updates the ranking of brokers based on trading volume andquantitysothatyoucanalwaysseehow yourbrokerisdoinginrelationtothemarket.
Market
TworequirementsmustbemettobegintradingstocksinDubai: YoumustfirstgetaNationalInvestorNumber(NIN). ThesecondstepistoopenanaccountwithabrokerontheDFMlist. The DFM and Nasdaq Dubai exchanges provide access to both domestic and foreign equities.Additionally,requestingaNINthroughtheDubaiFinancialMarketisverysimple; all you need to do is complete an investor number request form and submit identification documents. You will receive your NIN as soon as the DFM has approved your investor number request form. Both the Nasdaq Dubai market and the DFM will continuetoacceptyourNIN. Dubai’s Basic Requirements for Trading
STEPBYSTEP:HOWTO STARTTRADINGIN DUBAI?
In the United Arab Emirates, trading stocks is a fairly straightforward process that shows the government’s desire to foster a highly favourable business environment. You can quickly begin trade inDubaibyadheringtothesesimplesteps.
GETYOURNIN ORINVESTOR NUMBER STEP1 OPTION1:USETHEDFMAPPTOAPPLY FORANIN OPTION 2: USE DUBAI CSD TO APPLY FORANIN OPTION 3: USE A REGISTERED BROKER TOAPPLYFORANIN TheNIN,orInvestorNumber,servesas bothyouridentityandaregulatory requirementfortradinginDubai.You canapplytoDFMinoneofthree straightforwardwaystogetthis number.
DFMrecentlyupdatedandexpandedthefeatures of its mobile app. You can use the app to apply for your NIN, provide the necessary paperwork, andquicklygetregulatoryapproval. Youcancompletetheentireapplicationinaslittle asthreeminutes,andanSMSwilldeliveryourNIN to you. You must upload
scanned copy of your Emirates ID and take
selfie
DFM
in ordertoapplyfortheNIN.
must
receive dividends
card
bankaccount. Use the DFM App to apply for a NIN (the easiest and fastest way)
a
a
in the
app
You
also specify whether you want to
through an iVestor
or a
Whatifyoulackastrongtechbackgroundandstill favourthetraditionalapproachtodocumentation? IfyouphysicallyvisittheDubaiCSDInvestorAffairs HelpDeskattheirlocationintheDubaiWorldTrade Centre,SheikhRashidTower,theyofferexcellent services. Thepaper-basedorelectronicapplicationformcan besignedandsubmitted.YourNINwillbequickly verifiedandissuedbytheauthorityviaSMS. Use Dubai CSD to apply for a NIN.
The third choice is to open an account with a broker who is authorised to act on your behalf. Verify that the brokerage firm you select is listed onDFM’slistofauthorisedbrokeragefirms. The application procedure and paperwork requirements are unchanged from before. The official NIN request form must be filled out and submittedviayourbroker. Use a registered broker to apply for a NIN.
OPENATRADING ACCOUNTWITH ABROKER STEP2 OnceyouhaveyourNIN,youcan moveontothefollowingstepand selectaregisteredbroker.Makesure toconductthoroughresearchbefore selectingabroker.
How to pick the best broker in Dubai for trading A list of authorised brokers with whom you can register for Dubai Stock Trading is published and updated by DFM. DFM mandates that everytradingmemberhaveabankguaranteeofatleastAED1million (USD 272,000) and paid capital of at least AED 30 million (USD 8,168,000). Here are some things to consider when selecting your broker: Listofservices Technology Feeschedule
List of services: Technology: Fee schedule: Variousbrokersprovidea rangeofservices.Equities trading,margintrading, andonlinetradingarea fewexamplesofstandard services.Fewbrokersmay beabletoprovideyou withmoresophisticated tradingoptionslike margintrading,direct marketaccess(DPA),and derivativetrading. Notallbrokersoffer onlinetradingplatforms withreal-timeand historicalpricingdataor well-designedmobile apps.Ifyouwanttotrade independentlywithout appointingsomeoneto manageyourportfolio, youmusthavethese. Thebrokers’feeschedules varyandcaninclude transactionfees,account openingfees,account maintenancefees,and portfoliomanagement fees.Beforeopeninga tradingaccount,check outtheirindividual websitesandmakesure youunderstandallthe fees.
START TRADINGIN DUBAI STEP3 It’s time to begin trading after you have opened an account with a regulated broker. The DFM app or DFM eservices portal allow you to sign up for real-time data updates from DFM and receive pricing updates. The information includes instruments listed on Nasdaq Dubai as well as DFM.
1 Youcancurrentlychoosefrom116 listedstocksonDFMandNasdaq Dubai.Youcancheckandtrade stocksontheDFMwebsiteusingthe detailedmarketprofilesandpricing informationforeachstock. Listed Equities 3 DFMalsoenablesyoutotrade commodities,ETFs,andtrading instrumentswithunderlyingassets. Lowmanagementcostscomparedto mutualfunds,andexcellentliquidity areafewadvantagesoftradingETFs. Market-Traded Funds (ETFs) 2 Experiencedinvestorscandiversify theirportfoliosandprotect themselvesagainstpricechanges bytradingderivativesorfutures withDFM. Derivatives 4 Ifyou’relookingforasafeandrisk-free returnonyourinvestment,bondsand Sukukaregreatchoices.Sukukand bondscanyieldreturnsofbetween3% and7%.Atthetimeofthiswriting,DFM had175SukukorIslamicbondsand97 conventionalbondslisted. Sukuk and Bonds YOU WILL HAVE ACCESS TO THE FOLLOWING TRADING OPTIONS AFTER ENROLLING:
FOLLOWYOUR PORTFOLIOWHEN TRADINGSTOCKS INTHEUAE
STEP4
You now understand how to use your trading account and a listed broker to buy and sell stocks as well as other investment instruments in Dubai. Always keep an eye on your investment portfolio as your next task.
CONCLUSION
The latest technologies have been introduced, and the trading process has been as much as possible streamlined, with the support of the local authorities.
In addition to stock market trading, Dubai and the United Arab Emirates offer a variety of other innovative investment opportunities, such as investments in web 3 technologies for Dubai trade.
CONTACTUS +971 44081900, +971 507775554 info@shuraa.com www.shuraa.com Sheikh Zayed Road, Office 501, 5th floor, Aspin Commercial Tower, Dubai, UAE
