Dubai's Financial Institutions: Tracking EPS Trends from 2020 to 2024

Dubai’s financial sector has experienced significant (EPS) (earnings per share) fluctuations over the past five years, reflecting broader economic trends and changes in investor confidence. EPS is an essential tool while analyzing the company's profitability

This article examines the EPS performance of leading financial institutions in Dubai between 2020 and 2024; we gain insight into how these firms have navigated economic challenges, regulatory changes, and shifts in market demand. Understanding these patterns can help analysts make decisions and assess the overall health of Dubai’s financial sector.

Understanding Dubai’s Market Growth and Risks

Dubai Financial Market (DFM)

Source: Dubai Financial Market P.J.S.C. (DFM) financial reports, dfm.ae

When discussing Dubai and finance, it's impossible not to mention the DFM, one of the largest stock exchanges in the Middle East, with a capitalization of USD ~247 billion as of the time of writing this article. The UAE is an emerging market due to its tax advantage, which grows steadily yearly (in all sectors). Thanks to its static growth, it receives more and more FDI (foreign direct investments) from foreign investors/ funds.

With an increased capitalization, firms can experience positive and negative EPS growth. In years (2021-2023) EPS has increased from 0.013 to 0.041, indicating good health and higher profits achieved by the companies. In the years (2023-2024) DFM experienced a decrease to 0.012 level because the Dubai insurance company(P.S.C.) reported a decline in EPS(AED 1.37 to AED 1.32) due to higher expenses.

Dubai’s Market Future: Sustained Growth or Emerging Risks?

Dubai is an emerging market in terms of market growth and a year-by-year increase in EPS, achieving one of the best results globally. However, with a positive trend, there are still risks related to investing in this market. One of the biggest insurance companies in the Middle East has plummeted in its EPS. While the market growth is undeniable, investors must remain vigilant while allocating their resources even if the whole sector is growing.