How one Abu Dhabi royal helped UAE reel in a $1 trillion market milestone

For the first time, stocks listed in the United Arab Emirates have surpassed a $1 trillion valuation, boosted by a surge in companies tied to Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan and a spree of local listings.

The UAE’s combined exchanges—Abu Dhabi and Dubai—are now worth more than markets like Milan and Madrid, making it one of the largest in the emerging markets space, only behind giants like India and China, according to a Bloomberg report.

A striking factor in this $1 trillion milestone is the influence of Sheikh Tahnoon’s business empire. As one of Abu Dhabi’s deputy rulers and the UAE’s national security adviser, Sheikh Tahnoon oversees a $1.5 trillion network of assets, including International Holding Co. (IHC), the nation’s largest public company. IHC, once a modest fish-farming firm, now accounts for nearly $250 billion in market value and 25% of the UAE’s total stock market capitalization, thanks to an extraordinary 43,000% surge in recent years.

Sheikh Tahnoon also chairs First Abu Dhabi Bank (FAB), one of the UAE’s banking giants and a major player in Abu Dhabi’s FTSE ADX General Index, where he and his firms make up over half the weighting. FAB even flirted with a bid for the UK’s Standard Chartered Plc last year, highlighting the Sheikh’s ambitions on the global stage.

This $1 trillion achievement has been a key goal for Abu Dhabi’s ruling family, eager to establish the UAE as a global financial hub. Members of the Al Nahyan family hope the UAE’s rising market value will attract foreign investment and encourage domestic capital to remain in the country.

The market’s ascent was also driven by a wave of high-profile IPOs, including Lulu International Holdings, which pulled off the UAE’s largest listing of the year. More major listings are expected, potentially including the likes of Etihad Airways and Talabat, Delivery Hero’s Middle Eastern unit.

The UAE’s stock market is now part of the MSCI Emerging Markets Index, holding a 1.2% share of the benchmark, attracting further international attention. The UAE, along with Saudi Arabia, has led the Gulf’s IPO boom since 2021, underscoring both nations’ efforts to diversify away from oil. With its market now hitting new highs, the UAE appears set on solidifying its place as a major player in global finance.