Dubai’s stock market has demonstrated strong performance in 2024, with the Dubai Financial Market General Index increasing by 10.9% in the first nine months, surpassing other Gulf Cooperation Council markets. This performance highlights growing investor confidence in Dubai’s economy. What factors are behind this significant rise? Let’s explore the key drivers.
The surge in Dubai’s population, which has grown by nearly 260,000 people since January 2023, has been a significant driver behind this market uptick. This population growth represents almost 75% of the total four-year increase from 2018 to 2022. Analysts suggest that such rapid population growth is creating favorable dynamics for the local stock market, particularly in sectors linked to infrastructure and utilities.
Salik Leading the Charge with Impressive Earnings
Salik, Dubai’s road toll operator, has been a standout performer, with the stock surging nearly 85% in 2024. In Q3, Salik delivered earnings that exceeded market expectations, driven by a 10% growth in vehicles registered with the company. The firm is on track to see a 25-26% year-on-year revenue growth in 2025.
Analysts predict that the expansion of Dubai’s road network, highlighted by the Roads and Transport Authority’s Dh3.7 billion development plan, will boost Salik further by introducing new toll gates. This growth is aligned with a rise in residential development in areas like Dubai’s South District, where more families are shifting from rental properties to homeownership, leading to an increase in traffic and toll revenue.
Parkin Benefiting from Urban Expansion
Similarly, Parkin, a key player in Dubai’s parking infrastructure, has benefitted from the growing car population in the city. The company reported a 25% year-on-year revenue growth, with a stellar 40% increase in EBITDA for Q3.
This surge is attributed to Parkin’s expansion in parking spaces, particularly through partnerships with developers in newly urbanized areas. The increase in demand for parking, coupled with rising car ownership, has positioned Parkin as a key beneficiary of Dubai’s growth.
As One Investments continues to strengthen its presence in Dubai, we offer you the opportunity to capitalize on the city’s positive economic momentum.
We take pride in contributing to Dubai’s growth story and invite our clients to invest in both a home and a future that is set to be prosperous and full of potential.
