Shariah stocks turn UAE markets into the year’s hottest trade

The UAE’s local equity markets have delivered standout returns over the past year, cementing the country’s position as one of the world’s best-performing investment
destinations. Dubai’s equity benchmark, the DFM General Index, surged more than 27% in 2024 and is up a further 18% year-to-date in 2025. This broad-based rally spans financials, real estate, and newly listed infrastructure companies, with Shariah-compliant stocks featuring prominently among the top performers.

According to Josh Gilbert, Market Analyst at eToro, this momentum reflects growing investor demand for high-growth opportunities in ethically screened assets. “Shariah-compliant stocks in the UAE have become a strong draw for both regional and international investors looking to combine financial returns with responsible investing principles,” he said. Standout names include Salik, Dubai’s exclusive toll gate operator, whose shares have soared approximately 80%, including dividends, over the last 12 months. Parkin, the city’s public parking operator, has seen its stock price surge over 200% including dividends since its IPO last year, as investors respond positively to its stable, defensive revenue model.

The financial services sector has also played a key role in driving market performance. Abu Dhabi Islamic Bank (ADIB), the UAE’s second-largest Islamic bank, has posted gains of over 98% including dividends in the last 12 months. Strong digital transformation, rising profit margins, and growing demand for Shariah-compliant financial services have underpinned this growth. Similarly, Amlak Finance, a key Islamic home financing provider, has seen its stock more than double in value over the past year, boosted by Dubai’s thriving property market.

In the real estate sector, Union Properties has emerged as one of the top performers of 2025, with shares rising over 100% year-to-date. Its successful restructuring and the broader real estate upcycle have positioned it just behind Amlak Finance as one of the best-performing stocks on the DFM Index this year.

These exceptional performances reflect renewed investor confidence in UAE equities. Strong macroeconomic fundamentals — including a projected real GDP growth of 4.4% in 2025 and 5.4% in 2026 — are helping to sustain momentum. High-profile IPOs like Parkin have further energized market participation, creating fresh investment opportunities and affirming global interest in the UAE’s capital
markets.

Today, both the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) host a robust lineup of Shariah-screened stocks, with a large portion of all listed companies adhering to Islamic investment principles. The UAE’s status as a global Islamic finance hub continues to attract capital from both Shariah-compliant and conventional investors looking to tap into the region’s dynamic growth
story.

A compelling combination of market-beating returns, solid fundamentals, and ethical investment appeal is making UAE equities — particularly Shariah-compliant stocks — an increasingly attractive destination for regional and international capital. As the country continues to diversify its economy and bring more companies to market, investor interest in these instruments is likely to deepen further.