Both the Dubai Financial Market and the Abu Dhabi Exchange have seen index growth of over 50% across the last three years. This growth is attributable to a variety a factors, including relatively cheaper valuations and the formation of new companies in emerging markets. Across the same time period, citywide real estate prices have also seen growth in excess of 50%.
Domestic Stocks Total Returns
Looking at the range of IPOs that have debuted since 2021, we can see that total returns are skewed towards capital gains. In the case of some of the more recent debuts, this is often because the companies have yet to pay their first batch of dividends since going public. However, even among those that have paid dividends, capital gains tend to dominate, accounting for 40% of total returns.
Real estate sales values have seen over 100% growth over the last three years. Despite this, they are still dwarfed by the total values traded in capital markets, and by a greater margin than they were in 2021. The two are only comparable when isolating the secondary capital market, which serves to illustrate the dominance of the primary market.