Dubai’s successful economic diversification efforts shone through in November 2024 as the Dubai Financial Market (DFM) General Index achieved its sixth consecutive monthly gain, marking the largest monthly increase among GCC markets.
Data from Kamco Invest revealed that the DFM index surged 5.6% during the month, closing at 4,847.3 points. This brought the year-to-date gains to 19.4%, the highest in the GCC. This robust performance contrasts with the wider GCC markets, which recorded a 1.2% decline in the MSCI GCC Index, marking a second consecutive monthly drop. The regional dip was attributed to softer energy prices and speculation of prolonged elevated U.S. interest rates following stronger-than-expected economic growth and inflation data in October 2024.
Sectoral Highlights
Seven of Dubai’s eight sectoral indices posted gains in November, with materials and real estate leading the charge, rising by 33.9% and 14.5%, respectively. Notable contributors to the real estate sector’s growth included Emaar Development, which gained 22.3%, and Deyaar Development, which saw a 37.8% rise. The materials sector was bolstered by National Cement Company’s 33.9% increase.
The best-performing stock was National International Holding, which climbed 52.5%, followed by Deyaar Development and National Cement Company, which gained 37.8% and 33.9%, respectively. On the flip side, Al Mazaya Holding Company recorded the largest decline, falling 18.2%.
Trading activity also picked up, with total monthly volume rising 46.8% to 4.8 billion shares, while the total value traded increased 46% to Dh11.4 billion. Emaar Properties topped the value-traded chart with Dh2.9 billion worth of trades.
Abu Dhabi Struggles in November
Meanwhile, Abu Dhabi’s FTSE ADX index declined 1% in November, mirroring its October performance. The index closed at 9,234.80 points, pushing its year-to-date performance into negative territory with a 3.6% decline.
Seven of Abu Dhabi’s 10 sectoral indices recorded losses, led by an 18.4% drop in the consumer staples index. Newly listed Lulu Retail Holdings contributed significantly to this decline, with shares falling 12.3%. Conversely, the energy index rose 2.8%, supported by Dana Gas and Adnoc Drilling, which posted gains of 7.6% and 4.3%, respectively.
Trading activity in Abu Dhabi declined sharply. The total volume of shares traded fell 57.8% to 6.3 billion shares, while the value traded dropped 58.4% to Dh25.3 billion. IHC led in value traded, with Dh4.9 billion worth of shares changing hands.
Regional Outlook
Dubai’s strong November performance underscores its resilience and the effectiveness of its economic diversification initiatives, even as other GCC markets faced pressures from global economic dynamics.
