Etoro is now offering its clients access to stocks listed on Dubai’s DFM exchange in this article we look at that new service and explore what other routes are available to would-be investors in Dubai’s listed stocks
What new service has eToro announced?
eToro, the Israeli headquartered trading and investing platform, has announced a partnership with Dubai Financial Market (DFM), that allows eToro users to invest in 10 of the top-performing companies listed on the DFM exchange.
The partnership with DFM opens up new investment opportunities for eToro’s 38 million registered users worldwide.
Which DFM-listed companies are now available for trading through eToro?
eToro clients can now invest in leading DFM stocks including Dubai Electricity & Water Authority (Dewa), Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development, Gulf Navigation Holding, Ajman Bank, Commercial Bank of Dubai, Salik, and Air Arabia.
What is the combined market capitalisation of these companies?
The 10 companies eToro is making available to clients have a combined market capitalization of over $124 billion.
The stocks span a broad range of sectors including real estate, banking and finance, utilities, public services, logistics, and transport.
Can eToro clients trade CFDs on these Dubai-listed stocks?
eToro clients can only trade Dubai-listed stocks as cash equities and not CFDs and for the moment it seems that eToro has stolen a march on its rivals, several of whom have a presence in Dubai but don’t appear to offer trading in local stocks.
How can I invest in the Dubai and the UAE?
There are several ways to invest in Dubai and the wider UAE but if you want to invest and trade in local equities then you will need to open a brokerage account you can do this with a Dubai-based broker who is a member of the DFM and or Nasdaq Duba or with eToro.
The DFM website has some guidance about choosing a local broker alongside a list of its brokerage members and links to their websites at the time of writing 25 DFM member firms offer equity trading.
As part of the account application process, you will need to obtain a DFM Investor Number or NIN.
How can I apply for a DFM Investor Number (NIN)
Having this individual investor identifier is a legal requirement for DFM traders, and your broker will help to facilitate this for you.
Once you have your NIN and your account is opened you will need to deposit funds into the account and once those funds have cleared then you are ready to start trading.
What can I trade and invest in on the DFM exchange?
There are 128 stocks listed on the DFM exchange, though foreign ownership of some securities is subject to limits, and that means not all stocks listed on the DFM will be available to trade or invest in.
You can check what the foreign ownership limits are on individual DFM stocks, and how much of the “float” is available for foreign investment, via the DFM website which hosts a regularly updated list of the ownership limits and availability.
As we noted above eToro has selected 10 of the best-known and most widely traded DFM equities for its clients to deal in.
DFM investors can track their portfolio and the prices of individual securities through the DFM APP which is available from the iOS and Android App stores.
The app offers the ability to set and create watchlists and is powered by real-time data from the exchange.
Are there any ETFs that track Dubai-listed stocks?
BlackRock’s iShares offers an ETF that tracks the MSCI All UAE Cap index. And, as of the end of June, the fund had returned +4.46% over the last 5 years and had US $35.36 million of assets under management.
Various other emerging market ETFs have exposure to Dubai and DFM-listed stocks.
However, their weightings to the Emirate are relatively light, for example, the Van Eck Africa Index ETF has just 4.05% of the fund invested in Dubai-listed stocks, according to data from ETFDB.com.
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As well as extensive experience of writing financial commentary, he previously worked as a Market Research & Client Relationships Manager at Admiral Markets UK Ltd, before providing expert insights as a market analyst at Pepperstone.
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