Is DFM a good buy? (Dubai)Why You Might Consider Buying
Fundamental tailwinds
-Dubai's economy is seeing strong growth, with GDP rising and non-oil sectors performing well. FDI inflows remain high, and tourism is growing (~16.8 m visitors in 2024).
-Exchange revenue is benefiting from rising trading volumes, even as clearing fees decline.
-It seems that each time DFM creates a new low, we get a nice pump from it, but this pump seems to get smaller each time it occurs.
Why Caution Is Warranted
Geopolitical volatility
-Regional tensions (Middle East conflicts).
Real estate pressure
-Fitch warns Dubai property prices could fall by double digits later in 2025–26 due to oversupply (~210k new units).
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
