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DFM seeks to widen investor base with eToro partnership

eToro users can now invest in top DFM listed companies

eToro, the trading and investing platform, on Monday announced its partnership with Dubai Financial Market (DFM), enabling eToro’s 38 million registered users to invest in 10 companies listed on the exchange.

These DFM listed companies collectively boast the highest market capitalisation and liquidity rates, spanning a broad range of sectors including real estate, banking and finance, utilities, public services, logistics, and transport.

This partnership aims to broaden investment opportunities for eToro’s user base and highlights the growing appeal of Dubai’s Financial Market. By integrating DFM stocks on the eToro platform, users can now diversify their portfolios with high-performing stocks from the region’s leading exchange. Through this strategic alliance, eToro users gain access to a diverse selection of top DFM-listed companies, expanding investment horizons and enhancing the trading experience.

eToro users will be able to invest in top DFM 10 stocks like Dubai Electricity & Water Authority (Dewa), Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development, Gulf Navigation Holding, Ajman Bank, Commercial Bank of Dubai, Salik, and Air Arabia, which have a combined market capitalisation of over $124 billion.

Jason Hughes, senior executive officer at eToro Middle East, said: “On eToro, users can invest in 20 stock exchanges, gaining access to global and emerging markets. The geographical breadth of our stock offering aims to address the unique needs and preferences of our users who wish to invest in foreign equities as well as their home market. By adding this initial selection of DFM stocks, we aim to support the investment needs of our UAE investors as we continue to develop tailored solutions for the region. We are grateful for the collaboration with DFM and look forward to providing investors worldwide with access to participate in the UAE’s growth story.”

Khalifa Rabba, chief operating officer, Dubai Financial Market, said: “At DFM, we are dedicated to broadening market accessibility and attracting a diverse range of investors for our listed companies. The addition of DFM-listed stocks to the eToro platform aligns with our mission to promote growth and development of our financial market. We remain committed to supporting initiatives that drive this growth and provide global investors with seamless access to robust investment opportunities in Dubai.”

The addition of DFM stocks onto the eToro platform is facilitated by Dubai-based emerging markets specialist Arqaam Capital.

According to eToro projections, the UAE’s key sectors such as real estate, banking, utilities, and logistics & transport are expected to continue their strong growth trajectory, driven by robust economic fundamentals and increasing demand. “We believe that by offering our users access to these thriving sectors, they can tap into the UAE’s dynamic economic landscape and benefit from the growth opportunities it presents,” Hughes told Khaleej Times.

Hughes said eToro’s partnership with DFM reflects “our strong belief in DFM’s potential to evolve into one of the world’s leading capital markets”. “We see tremendous growth opportunities within the UAE, and by offering our 38 million users access to DFM-listed stocks, we are enabling them to tap into this burgeoning market,” he added.

According to PwC’s Capital Markets Watch report, the Middle East, including the UAE, has seen a robust increase in IPO activity, driven by economic diversification, regulatory enhancements, and strategic efforts to position Dubai as a global financial hub. In 2023 alone, the region saw a significant rise in IPO listings, reflecting strong investor appetite and confidence in the market.

“The broader accessibility of DFM stocks to international investors could further enhance market liquidity and visibility, potentially encouraging more companies to consider going public. This aligns with broader trends observed by PwC, where increased investor engagement often stimulates further IPO activity as companies seek to capitalise on favourable market conditions. Given these factors, while it is challenging to predict exact outcomes, the conditions are favourable for a continued rise in IPOs on the DFM, supported by the ongoing momentum in the region’s capital markets. At eToro, we continue monitoring the UAE market closely and are always looking forward to adding new companies with strong fundamentals to offer diverse and robust investment opportunities to our users,” Hughes said.

The integration of DFM stocks into eToro’s platform aligns with the platform’s broader strategy of expanding its asset offerings to tailor services to the needs of local users. “Engaging with local stock markets also gives us the opportunity to collaborate with local experts. In the UAE, for instance, we collaborated with Dubai-based emerging markets specialist Arqaam Capital to build the infrastructure to bring DFM stocks to the eToro platform,” Hughes said.