How stock markets work, and the UAE's exchanges and regulators

A stock market is simply an organised place where shares in companies are bought and sold through licensed firms. Knowing who runs and regulates it in the UAE helps you spot what is legitimate.

What happens on a stock exchange

• When a company lists on an exchange, it sells part ownership in the form of shares, which investors can then buy and sell with each other.
• You do not trade with the exchange directly. Investor.gov explains that brokers buy and sell shares for customers in exchange for a fee called a commission.
• Prices change constantly as buyers and sellers agree trades, and Investor.gov is clear that prices move down as well as up.
• If you sell for less than you paid, you make a loss; if the company pays dividends, you receive a share of its profits.

The UAE's main exchanges

• According to the UAE government portal, the Abu Dhabi Securities Exchange (ADX) started in 2000.
• The Dubai Financial Market (DFM) was established as a public institution in 2000. The government portal describes it as the first financial market in the world to comply with Islamic Sharia rules.
• Nasdaq Dubai is described by the portal as the Middle East's international financial exchange.
• UAE markets mainly trade shares, bonds, investment funds, commodities, currencies, metals, derivatives and sukuk, according to the portal.

Who regulates them

• The UAE's federal securities regulator is now called the Capital Market Authority (CMA). It was previously called the Securities and Commodities Authority (SCA).
• The renaming was made by Federal Decree-Law No. 32 of 2025, with a companion law, Federal Decree-Law No. 33 of 2025, both taking effect on 1 January 2026, according to law firms Latham and Watkins and Al Tamimi.
• The UAE government portal says the CMA oversees ADX, DFM and the Dubai Gold and Commodities Exchange.
• Financial free zones have their own regulators: the Dubai Financial Services Authority (DFSA) for the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) for Abu Dhabi Global Market (ADGM).
• You will still see 'SCA' on older websites, warnings and news articles from before 2026.

Getting started, and the age rules

• To trade on DFM you first need an Investor Number (NIN). DFM's FAQ says opening one is free and it can be issued immediately or within one working day, depending on how you apply.
• After getting a NIN, DFM says you select a brokerage firm licensed on the DFM and open a trading account.
• DFM states that investors below 18 are considered minors, so a guardian must request the Investor Number on their behalf.
• FAB Securities' FAQ similarly says that under-18s are classed as minors by the regulator, and the minor's legal guardian must sign the account opening forms.
• In practice, this means anyone under 18 who wants to own shares needs a parent or legal guardian to act for them.

Healthy habits before your first trade

• Treat your first investments as learning, with small amounts you could afford to see fall.
• Only use a broker that is licensed by the relevant regulator, and check that yourself on the regulator's website rather than trusting a link or advert.
• Read what you are buying: what the company does, how it makes money and what could go wrong.
• Remember the FCA's question: 'Do I understand how this investment works?' If not, do not invest yet.