Dubai’s DFM Index Leads GCC Markets with Record November Gains

Dubai’s economic diversification strategy demonstrated its strength once again, as the Dubai Financial Market (DFM) General Index recorded its sixth consecutive monthly gain in November 2024, marking the highest year-to-date increase among Gulf Cooperation Council (GCC) markets.

According to Kamco Invest, the DFM index surged by 5.6% in November, closing at 4,847.3 points, with a year-to-date gain of 19.4%. This performance stood out amid a broader decline in GCC markets, driven by global economic headwinds, including softer energy prices and concerns over prolonged high U.S. interest rates following stronger-than-expected growth and inflation data. The MSCI GCC Index dropped by 1.2%, marking its second consecutive monthly decline, as three out of seven GCC benchmarks reported losses.

Sectoral Drivers in Dubai

The DFM’s November gains were underpinned by robust performances in the materials and real estate sectors, which rose by 33.9% and 14.5%, respectively. Key contributors included Emaar Development, which climbed 22.3%, and Deyaar Development, which saw an impressive 37.8% rise. National Cement Company also posted significant growth, with shares up by 33.9%.

In terms of individual stock performance, National International Holding led gains with a 52.5% increase, followed by Deyaar Development and National Cement Company. Conversely, Al Mazaya Holding recorded the steepest decline at 18.2%, followed by National Industries Group and United Foods Company, which fell by 15.1% and 10%, respectively.

Increased Trading Activity

Dubai also experienced a notable uptick in trading activity, with total monthly volume rising by 46.8% to 4.8 billion shares, and the value of traded shares climbing 46% to AED 11.4 billion. Emaar Properties topped the value-traded chart with AED 2.9 billion in transactions, followed by Emirates NBD and Dubai Islamic Bank.

Abu Dhabi Market Declines

In contrast, Abu Dhabi’s FTSE ADX index fell by 1% in November, extending its year-to-date decline to 3.6%. Seven of the ten sectoral indices on the exchange reported losses, with the consumer staples index dropping 18.4%, driven by a 12.3% decline in Lulu Retail Holdings.

However, the energy sector posted gains, with Dana Gas and Adnoc Drilling shares rising 7.6% and 4.3%, respectively. Trading volumes in Abu Dhabi fell sharply by 57.8% to 6.3 billion shares, with a 58.4% drop in total traded value to AED 25.3 billion.

Outlook

Dubai’s consistent market performance reflects the success of its economic diversification policies, positioning it as a leader in the GCC despite global and regional challenges. The results underscore the resilience of its key sectors, particularly real estate and materials, as the emirate continues to attract robust investor confidence.