The total market capitalization of Arab stock exchanges increased by 2.54 percent to $4.30 trillion by the end of the third quarter of 2024, adding approximately $106.55 billion in value compared to the previous quarter. The Arab Monetary Fund‘s latest report attributes this growth to the strong performance of the Abu Dhabi Securities Exchange and the Dubai Financial Market.
In Q3, Arab stock exchanges witnessed a positive recovery as global interest rates declined, investor sentiment improved, and key economic sectors signaled resilience. Total trading volumes across the region’s markets surged by 47.46 percent, reaching 328.92 billion traded shares during the quarter. The Iraq Stock Exchange led this growth, followed by the Egyptian and Saudi exchanges.
The report also revealed that the strongest-performing sectors were real estate, financial services, and technology, which continued to attract local and foreign investment. Earnings reports from listed companies, especially in the UAE and Saudi Arabia, also supported investor confidence.
13 Arab stock exchanges witness growth
Arab stock exchanges witnessed a volatile quarter, which ended in an overall positive performance. The Arab Monetary Fund reveals that 13 exchanges recorded an increase, while three exchanges recorded a decline by the end of Q3.
Notably, the Beirut Stock Exchange led the upward movement among Arab stock exchanges, with its index increasing by 29.03 percent, followed by the Egyptian Exchange and the Damascus Securities Exchange, which rose 13.76 and 12.66 percent, respectively.
The stock exchanges of Dubai, Casablanca, Qatar, and Iraq also recorded increases ranging between 11.75 and 5.35 percent. Meanwhile, the rest of the Arab stock exchanges witnessed increases ranging between 4.90 percent and 0.49 percent. In contrast, the stock exchanges of Bahrain, Amman, and Palestine recorded declines of 0.63, 0.82, and 7.78 percent, respectively.
Factors imaging market performance
The performance of Arab stock exchanges in Q3 2024 was influenced not only by global trends, but also by regional economic factors including the volatility of oil prices, political instability, and country-specific economic policy reforms. These factors played an influential role in determining the resilience and performance of different markets, leading to varying results across the Arab region.
Global oil prices faced downward pressure during the third quarter of 2024. Given the importance of oil to many Arab economies, fluctuations in its global prices had a notable impact on financial markets in exporting countries such as Saudi Arabia, Kuwait, Qatar, and the UAE. Despite these challenges, the impact on GCC markets remained relatively limited, with non-oil sectors such as real estate, technology, and financial services contributing to the overall stability of market indices.
In Saudi Arabia, for example, the Tadawul All-Share Index (TASI) recorded a 4.68 percent quarter-on-quarter increase, supported by strong corporate earnings in non-oil industries and large public investment projects under Vision 2030. On the other hand, oil importers such as Egypt and Jordan benefited from lower oil prices, helping ease inflationary pressures. This improvement has provided more scope for monetary easing and fiscal stimulus, supporting equity markets in these countries.
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Arab stock exchanges with the largest market value
In terms of market value, the Saudi Exchange topped Arab stock exchanges in Q3 with a market value of $2.69 trillion, representing about 62.7 percent of the total market value of Arab stock exchanges. Following that came the Abu Dhabi Securities Exchange with a market value of $798.84 billion.
The stock exchanges of Dubai, Qatar, Kuwait, Casablanca, and Muscat recorded market values ranging between $206.16 billion and $63.68 billion. Meanwhile, the rest of the Arab stock exchanges recorded market values ranging between $45.22 billion and $3.97 billion. Notably, the market value of the Saudi, Abu Dhabi, Dubai, Qatar, and Kuwait markets together represents about 93.28 percent of the total market value of Arab stock exchanges in Q3 of 2024.
