UAE market capitalization reaches 19-year high

The market capitalization of the UAE reached its highest level in 19 years, with 910 billion dirhams ($ 247.76 billion) in July, with many international companies forecasting a one billion dirham barrier of 39, here the end of 2019.

The market capitalization of UAE-listed companies at the end of the first seven months of this year accounted for 65% of UAE GDP in 2018, up from 56% in 2017, strengthening the UAE's position in global competitiveness indicators. .

According to the standards of the international financial institutions, the index of the market value of equities listed on the capital markets in relation to the gross domestic product is the main indicator taken into account in the preparation of reports on the competitiveness of countries at the international level. .

The badysis of changes in market value shows that the strong growth recorded since the beginning of the year was supported by several factors, including the improvement of market prices. companies traded during the recent period, the listing of new companies or the increase of the capital of listed companies,.

Financial experts expect that the pace of improvement in the market value of equities traded in the coming period will continue in line with rising prices, particularly for the main companies listed in the banking and retail sectors. immovable.

According to official figures released by the Securities and Commodities Authority (SCA), the market capitalization of gross domestic product (GDP) of the United Arab Emirates reached 53.3% in 2014, an increase of 56% in 2015 and 62% in 2016.

The market capitalization of listed companies accounted for 62.5% of the country's GDP in 2017, but fell to 61.5% in 2018 before sharply increasing at the beginning of the year.

The banking, financial, real estate and communications sectors accounted for 85% of the total market capitalization of companies listed on both markets at the end of 2018.

The banking and financial sector is the industry's first in terms of market capitalization, accounting for about 50% of the total market value of equities listed on the financial markets at the end of 2018, followed by the telecom, telecom, and financial sectors. real estate and others.