Tired of the Big Tech circus? If you’re in the UAE, it might be time to bring your money closer to home — and Morgan Stanley has a Wall Street-style playbook for you.
Let’s get one thing straight though: Middle East stock markets don’t move like the US’s. They’re smaller, less liquid, and way more prone to big swings when large investors step in or out.
But if Big Tech’s rollercoaster isn’t your scene right now, Morgan Stanley’s spotted some UAE gems that might be worth parking your $$$ in.
The watchlist
Over the past year, Dubai’s stock index has jumped 24.3%, slightly beating the S&P 500’s 24.1% gain.
Leading the charge is Emaar Properties, the Dubai developer behind the Burj Khalifa that is up 75% thanks to Dubai’s real estate boom. Property sales crossed $100 billion in 2024, making developers like Emaar big winners.
Read more: Emaar puts India business on sale with Adani in the chase
Emaar’s on the list, but Morgan Stanley is also eyeing:
- Emirates NBD, Dubai’s banking giant (7x P/E)
- ADNOC Gas, a major energy player (16x P/E)
- Aldar Properties, another real estate heavyweight (10x P/E)
- Parkin and Talabat, which have higher valuations (28x and 20x P/E) but strong growth potential
- e&, aka Etisalat, whose Khazna Data Centers is one of the key AI players in the UAE (14x)
Unlike speculative tech plays, UAE’s biggest stocks are economic cornerstones, often government backed. They’re not moonshot stocks, but they’re steady with little volatility.
Morgan Stanley sees them as bets on growing trade, immigration, AI, and decarbonization.
The IPO question
UAE’s stock market cap has jumped 5x to $1 trillion in recent years, fueled by recent IPOs. The country ranked among the top five markets globally for IPO fundraising in 2024, raising $6 billion and recording 20+ listings since 2022.
Morgan Stanley expects the market to continue deepening moving forward, which is essential for liquidity to improve.
Read more: Saudi banks are poised to beat UAE peers, says Goldman
Names like luxury hotels operator FIVE Hotels, Abu Dhabi flag carrier Etihad Airways, and tech services firm Alpha Data could IPO in 2025.
But not all new listings are hot. Shrinking liquidity and overvalued debuts have led to some flops. MONIIFY has covered that here.
The (big) risks
The UAE is quite exposed to the global economy, which means a recession or slowdown in growth elsewhere could directly impact trade and investment in the Gulf country.
It’s worth noting that some key drivers of the economy — oil, tourism, transportation, and trade — are linked to the global economy.
Plus, Gulf currencies are pegged to the US dollar, meaning whatever the Federal Reserve does with interest rates matters here, too. Keep an eye out for that.
The bottom line is that UAE stocks offer stability. If you’re done with the Big Tech drama, you could dive in. Just don’t expect moonshot.
Here’s Morgan Stanley’s playbook:
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
