Best stock to buy with the rising UAE GDP

Author

Marc Samouilhan
May 31, 2024

Market Pulse

TODAY'S INDEX (FADGI): 8752.2 ⬆️ 0.473%
TODAY'S INDEX (DFMGI): 3971.01 ⬆️ 0.28%
Gold trading at $ 2 342
USD index @ 104.876
Brent @ $ 79.25

Market Summary  Seventy-three companies were involved in the trading session. The share price of 32 companies went up, 27 went down and 14 remained unchanged. Abu Dhabi National Building Materials Company (BILDCO) led the gainers, closing at Dh0.235, up by 14.63%. Similar to ADX, the Dubai Financial Market (DFM) also closed on a positive note at 3971.01 points, up by 0.283%. Forty-two companies were involved in the trading session. The share price of 12 companies went up, 23 went down and seven remained unchanged. GFH Financial Group led the gainers closing at Dh1.1, up by 7.84%.

UAE’s GDP rises 3.6%, secures 5th largest economy position in real GDP growth index globally.

  1. GDP Growth in 2023:

    • The UAE’s GDP reached Dh1.68 trillion, showing a 3.6% increase from 2022.

    • Non-oil GDP grew to Dh1.25 trillion, reflecting a 6.2% increase.

  2. Economic Diversification and Leadership:

    • Non-oil sectors contributed 74.3% to the GDP, marking a record-breaking growth.

    • The UAE aims to elevate its GDP to Dh3 trillion by 2031 under the leadership of Sheikh Mohamed bin Zayed Al Nahyan and Sheikh Mohammed bin Rashid Al Maktoum.

  3. Sectoral Growth:

    • Financial activities and insurance grew by 14.3%, transport and storage by 11.5%, and construction by 8.9%.

    • Real estate activities saw a growth rate of 5.9%, and the hospitality sector grew by 5.5%.

  4. Current Prices and Global Competitiveness:

    • At current prices, the GDP reached Dh1.88 trillion, with non-oil GDP at Dh1.43 trillion.

    • The UAE ranked fifth worldwide in the Real Economic Growth Rate Index and sixth in GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023.

  5. Strategic Plans and Economic Policies:

    • The UAE has implemented resilient economic policies and strategic plans promoting economic diversification and supporting emerging sectors.

    • The country continues to strengthen its economic position regionally and globally through these measures.

Market Smart Picks

Dubai Islamic Bank (DIB)

  • Reason: Given the UAE's strategic plans to support economic diversification and emerging sectors, Dubai Islamic Bank stands out as it operates in both traditional and emerging sectors. The bank benefits from the growth in the financial sector and its innovative approaches.

DISCLAIMER: This information is prepared by Market Smart and uses public and reliable sources. Market Smart nor any of its directors, isn't liable for its content or use. It's not intended as investment advice or a solicitation to trade financial products.