According to a report by Henley & Partners, an international investment migration advisory firm, 120,000 millionaires relocated worldwide in 2023. This year, 128,000 are expected to make a move.
- Financial activities and insurance: 14.3%
- Transport and storage: 11.5%, driven by increased airport passengers
- Construction and building: 8.9%
- Real estate: 5.9%
- Residency and food services: 5.5%, with a 28 million increase in hotel guests
- International visitors: 31.5 million, a 25% increase from 2022
Overall, from January 2022 to date, FADGI has increased by about 7%, and DFMGI by 26%.
Zooming out, these fluctuations are typical in stock markets. Short-term bear cycles, such as the 2008 financial crisis, the 2009 Dubai debt standstill, the 2015-16 Chinese stock market crash, and the 2020 COVID crash, are part of the market's natural ebb and flow. Long-term, the market remains bullish.
Cities like London, Manhattan, Paris, and Berlin have grown over 200 years. In contrast, Dubai has achieved similar growth in just 20 years. The UAE ranks among the top 10 globally in various GDP-related competitiveness indicators, such as:
- 5th in Real Economic Growth Rate Index
- 6th in GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023
- 6th in the GNI Index, UNDP Human Development Index Report 2024
The UAE's leadership, progressive economic policies, and the 'We the UAE 2031' vision, aimed at raising GDP to AED 3 trillion within a decade, will drive the country's growth. The UAE's digital economy strategy, launched in April 2022, aims to double the digital economy’s contribution to GDP from 9.7% to 19.4% within ten years. According to a report from PwC Middle East, AI could contribute $96 billion to the UAE economy by 2030, nearly 14% of its GDP.
Overall GDP growth projections are expected to accelerate to 6.2% in 2025. Oil GDP is expected to expand by 8.4% in 2024, and non-oil GDP growth is projected to grow steadily at 5.3% in 2024 and 2025.
Stay invested, and view market dips as opportunities. The UAE's economic outlook is promising, and the stock market is poised for long-term growth.
Why is this important for those living in the UAE?
Because the UAE has topped the list of destinations for the world's wealthy for the third consecutive year. By the end of 2024, a record 6,700 millionaires are expected to move to the Emirates, far surpassing the USA, where only 3,800 millionaires plan to settle.
Report link -The Henley Private Wealth Migration Report 2024
When wealthy individuals migrate, they bring significant capital, boosting a country's forex reserves. So, if you're still unsure about investing in the UAE or are an investor concerned about recent market downturns, keep reading. This blog will provide an outlook on the future of the UAE economy and expectations for its stock market over the next decade.
- Strategic location
- Large sovereign wealth
- Government spending on infrastructure
- Progressive economic policies
However, two major reasons stand out: the non-oil sector's contribution to GDP and the increase in foreign direct investment (FDI). In 1971, the year of the UAE's formation, the oil sector contributed 90% to the country's GDP, while the non-oil sector contributed only 10%. Today, the non-oil sector accounts for 73% of the UAE's GDP. In 2023, the non-oil GDP reached AED 1.25 trillion ($340.3 billion), a 6.2% growth compared to 2022. Key factors influencing this growth include:
- Recovery in global travel and tourism post-COVID
- Booming real estate sector
- Strong performance in construction
When wealthy individuals migrate, they bring significant capital, boosting a country's forex reserves. So, if you're still unsure about investing in the UAE or are an investor concerned about recent market downturns, keep reading. This blog will provide an outlook on the future of the UAE economy and expectations for its stock market over the next decade.
don't want to read. watch full video - here
UAE's Economic Growth: The Numbers
The UAE's economy has shown robust growth, with the country's GDP reaching AED 1.68 trillion in 2023, a 3.6% increase from 2022. Several factors contribute to the UAE's stable economy despite recent oil price fluctuations and global economic recessions:- Strategic location
- Large sovereign wealth
- Government spending on infrastructure
- Progressive economic policies
However, two major reasons stand out: the non-oil sector's contribution to GDP and the increase in foreign direct investment (FDI). In 1971, the year of the UAE's formation, the oil sector contributed 90% to the country's GDP, while the non-oil sector contributed only 10%. Today, the non-oil sector accounts for 73% of the UAE's GDP. In 2023, the non-oil GDP reached AED 1.25 trillion ($340.3 billion), a 6.2% growth compared to 2022. Key factors influencing this growth include:
- Recovery in global travel and tourism post-COVID
- Booming real estate sector
- Strong performance in construction
Sectoral ( Non-Oil ) Growth in 2023
Different sectors have shown impressive growth:- Financial activities and insurance: 14.3%
- Transport and storage: 11.5%, driven by increased airport passengers
- Construction and building: 8.9%
- Real estate: 5.9%
- Residency and food services: 5.5%, with a 28 million increase in hotel guests
- International visitors: 31.5 million, a 25% increase from 2022
UAE Stock Market: Past
How does this economic growth reflect in the UAE stock market?From January 2022 to December 2023, FADGI showed strong growth in 2022, while DFMGI was in an uptrend in 2023.
In 2024, FADGI has dropped approximately 800 points from its all-time high, while DFMGI has fallen about 200 points, trying to find support at 4000.
 |
| source - InvestmoneyUAE-tradingview |
 |
| source - InvestmoneyUAE-tradingview |
Zooming out, these fluctuations are typical in stock markets. Short-term bear cycles, such as the 2008 financial crisis, the 2009 Dubai debt standstill, the 2015-16 Chinese stock market crash, and the 2020 COVID crash, are part of the market's natural ebb and flow. Long-term, the market remains bullish.
 |
| source - InvestmoneyUAE-tradingview |
UAE Stock Market: A Promising Future
Understanding the future of the UAE stock market requires looking into its past. The UAE stock market is relatively young, with ADX and DFM founded in 2000. FADGI started in 2001, and DFMGI in 2005. In comparison, India's NIFTY started in 1996, and S&P, NIFTY, and SSE composite indices have shown higher growth, but the pace of development in the UAE is remarkable. |
| source - InvestmoneyUAE-tradingview |
Cities like London, Manhattan, Paris, and Berlin have grown over 200 years. In contrast, Dubai has achieved similar growth in just 20 years. The UAE ranks among the top 10 globally in various GDP-related competitiveness indicators, such as:
- 5th in Real Economic Growth Rate Index
- 6th in GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023
- 6th in the GNI Index, UNDP Human Development Index Report 2024
The UAE's leadership, progressive economic policies, and the 'We the UAE 2031' vision, aimed at raising GDP to AED 3 trillion within a decade, will drive the country's growth. The UAE's digital economy strategy, launched in April 2022, aims to double the digital economy’s contribution to GDP from 9.7% to 19.4% within ten years. According to a report from PwC Middle East, AI could contribute $96 billion to the UAE economy by 2030, nearly 14% of its GDP.
Overall GDP growth projections are expected to accelerate to 6.2% in 2025. Oil GDP is expected to expand by 8.4% in 2024, and non-oil GDP growth is projected to grow steadily at 5.3% in 2024 and 2025.
Conclusion
All developed economies are currently stagnant, presenting opportunities in emerging markets like Africa, the UAE, and India. Investing is not about timing the market but about time in the market. Start investing as soon as possible and make it a habit. Consider using a Systematic Investment Plan (SIP). Small steps today lead to giant leaps tomorrow.Stay invested, and view market dips as opportunities. The UAE's economic outlook is promising, and the stock market is poised for long-term growth.
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