Nasdaq Dubai offers one of the world’s largest selections of Sharia-compliant financial assets through its Sukuk listings. Alongside major indices like the FTSE Nasdaq Dubai UAE 20 Index, online brokers provide access to some of the biggest Middle-Eastern equities. This tutorial unpacks the products available on the Nasdaq Dubai, major constituents, and trading hours. Our British traders have also listed the best Nasdaq Dubai brokers:
Nasdaq Dubai Brokers UK
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Comparing Nasdaq Dubai Brokers
The Nasdaq Dubai has 29 member brokers that have access to the exchange. To buy and sell securities on the exchange, traders need to open an account with one of these member firms. Outside this stipulation, traders of any nationality, including the UK, can invest in its products.
Some well-known Nasdaq Dubai brokers include Credit Suisse, Citigroup Global Markets, Deutsche Bank, HSBC, J.P. Morgan Securities, Morgan Stanley & Co. and Standard Chartered. Below, we cover some of the key considerations that you should think about when choosing a firm.
Nasdaq Dubai brokers can have different fee structures. Some offer different account plans that have different fee structures in themselves.
For example, Morgan Stanley has a stock plan that allows for direct pricing. This means you can buy stocks, ETFs and mutual funds with zero commission fees. However, other areas of the account still charge fees, such as the representative-assisted trade fee of £25 or overnight check orders of £10 per check.
Fees can quickly eat away at your trading profits, so make sure to find the broker and trading plan that minimises costs.
Nasdaq Dubai brokers may offer different trading platforms, which are how you interact with the market to open and close trades, view price action, interact with personal managers, deposit and withdraw funds, etc. As such, it is important that you understand the capabilities and limitations of the platform offered.
Some Nasdaq Dubai brokers may offer demo accounts or trial runs before you open a live account with them. This may need to be enquired about online through a form or email for some companies.
Other things to consider are the tools and additional features offered by the Nasdaq Dubai brokers. Some may boast automated investing, high-quality research and insight, strategy information or investment ideas. The offerings of each broker will be slightly different.
Tools like an economic calendar, financial reports and live Nasdaq Dubai Dubai news will be beneficial for most traders.
How The Nasdaq Dubai Works
The Nasdaq Dubai is a Middle-Eastern stock exchange listing both regional and international shares. The region includes the United Arab Emirates, the Gulf Cooperation Council (GCC), the Middle East, North Africa, Turkey and the Indian sub-continent.
The exchange is physically located in the Dubai International Financial Centre and is owned 66% by the Dubai Financial Market (DFM) and 33% by Borse Dubai. It was founded in September 2005 and is regulated by the Dubai Financial Services Authority.
The exchange is one of the world’s largest venues for Sukuk listings (financial products complying with sharia laq). Dubai is the biggest hub for Sukuk listings at USD 51.21 billion. In contrast, Nasdaq Dubai has listings to the tune of USD 49.06 billion.
The exchange also offers other services like the Nasdaq Dubai Academy, providing financial education to issuers, members, investors, market participants and the general public.
- 2005 – The Dubai International Financial Exchange was founded, listing equities and index products
- 2008 – The Nasdaq OMX acquires 1/3 of the exchange, rebranding as the Nasdaq Dubai. 2/3 was held by Borse Dubai, the holding company of the DFM and Nasdaq Dubai
- 2008 – The first equities derivative market in the UAE was launched on the Nasdaq Dubai
- 2010 – Equities trading moved to DFM’s trading platform
- 2010 – DFM acquires 2/3 stake of the Nasdaq Dubai, with the remaining held by Borse Dubai
- 2011 – Listing Authority control transfers to the Dubai Financial Services Authority
- 2013 – Fixed income trading platform launched, allowing for Sukuk and conventional bonds to be traded
- 2014 – Became the third largest venue for Sukuk listings worldwide with 28
- 2017 – Recognised by the ESMA under EU regulations
- 2018 – DFM Futures Index launched
The Nasdaq Dubai operates with two listing markets, the main market and the growth market. The main market lists larger companies, with market capitalisations over USD 250 million. The growth market lists small and medium-sized companies, with lower market capitalisation stats.
The exchange also allows for listing Sukuk and conventional bonds and funds. As the Nasdaq Dubai is relatively new, there are a limited number of securities available to trade.
The Nasdaq Dubai has 8 listed equities, funds & ETPs, including Emirates REIT, Nasdaq, Orascom Construction and The Bitcoin Fund. The exchange also has 100 Sukuk listings and 66 conventional bonds.
Nasdaq Dubai brokers may offer speculation upon the exchange’s two major indices, the FTSE Nasdaq Dubai UAE 20 Index and the Nasdaq Dubai Ideal Ratings Global Sukuk Index.
- FTSE Nasdaq Dubai UAE 20 Index – This is an index comprising the top 20 eligible companies based on market capitalisation. These include those trading on the Nasdaq Dubai, Dubai Financial Market and the Abu Dhabi Securities Exchange (ADX).
- Nasdaq Dubai Ideal Ratings Global Sukuk Index (NISKG) – This is an index measuring the performance of the global investable Sukuk universe. It takes all eligible Sukuk products and tracks the total return weighted by market value. There are several sub-indices, including ones for investment grade Sukuk, sovereign Sukuk, corporate Sukuk, Financials Sukuk and GCC Sukuk.
The Nasdaq Dubai can be traded on from Monday to Friday, 10:00 to 14:45 (Gulf Standard Time, GMT+4). For GMT, this equates to Monday to Friday, 06:00 to 10:45 (GMT). The market is open continuously for 4 hours and 45 minutes.
Nasdaq Dubai Market Holidays
The Nasdaq Dubai adheres to all major UAE national and Islamic holidays. During these dates, the exchange is closed or has reduced opening hours.
Bottom Line On The Nasdaq Dubai
Nasdaq Dubai brokers provide access to a range of securities on the Dubai-based exchange. This is beneficial to UK traders looking to trade Sukuk assets, with the exchange being one of the largest global Sukuk listers. The well-known Nasdaq Dubai member brokers are reputable, high-quality firms designed for professional or high-wealth traders looking to invest in the Middle Eastern exchange.
Can UK Traders Invest In The NASDAQ Dubai?
The Nasdaq Dubai welcomes traders of all nationalities to invest via the exchange. There are 29 member brokers that traders can sign-up with to trade on the exchange, including FCA-regulated JP Morgan and Standard Chartered.
What Is The Difference Between Nasdaq Dubai & DFM?
Both the Nasdaq Dubai and DFM are stock exchanges in the UAE. The DFM is the majority shareholder of the Nasdaq Dubai. The Nasdaq Dubai was setup for purely electronic investing, without a physical trading floor. Both exchanges are regulated by different bodies, the Nasdaq Dubai by the DFSA and the DFM by the Securities and Commodities Authority.
The Nasdaq Dubai was built to trade international stocks, unlike the DFM, which focuses on UAE-based and MENA region companies.
What Are The NASDAQ Dubai Opening And Closing Times In The UK?
The Nasdaq Dubai is based in the GMT +4 time zone. Its UK trading hours are Monday to Friday, 06:00 am to 10:45 am (GMT).
What Is The Best NASDAQ Dubai Broker?
The best Nasdaq Dubai broker will depend on your individual investing needs. Consider the trading platform offered, account types, fees charged, tools available, asset range and regulation.
Where Is The NASDAQ Dubai Based?
The Nasdaq Dubai is located in the Dubai International Financial Centre. This is a special economic zone found in Dubai, regulated by the Dubai Financial Services Authority. While the exchange is based here, it does not have a physical trading floor, only facilitating electronic services.