Forex trading trends - UAE

Forex trading trends - UAE

Forex trading trends - UAE

4 Emerging Trends in the Dubai Trading Market - UAE Forex Trading

UAE forex trading is hot trend now a days for many investors living here as its potential is huge. GCC countries, including UAE – the second biggest economy in the Middle East after Saudi Arabia continues to boom faster than any other region in the world. It is one of the few countries that have continued to grow in different aspects while the rest of the world plummeted because of the recession.

When it comes to trading, the UAE is one of the ideal places to be. With its highly developed offshore market and free trade zones, Dubai – the UAE’s primary commercial hub is known to be a globally regulated environment. The following are the emerging trends that I think have molded the online trading in Dubai over the past several years.

Trend #1: Forex Brokers Are Now Offering Dubai-Based Platforms

Dubai is distinctive among other offshore markets for its 100% ownership in free zones, no restrictions on capital repatriation, foreign exchange controls, trade barriers or quotas. Dubai also offers strong incentives and protections to investors. Because of this, it is not a surprise that a lot of Forex brokers have brought their companies into UAE. The Forex brokers in Dubai provide regionally trading platforms that cater to individual investors and corporate entities in the Middle East.

Trend #2: There Has Been a Growing Interest in Trading Indian Rupees

The Indian rupee future contracts have increased the Dubai Gold and Commodities Exchange (DGCX) volumes. Since 2010, there had been a rise for this product by 629%

The international interest in India as an emerging market has prompted investors and traders in the UAE, UK and Singapore to consider tapping the Indian Rupees from the DGXC. These are all attributed to the rapidly growing trade flows and high volatility of the exchange markets.

Trend #3: Forex Trading Has Become More Attractive After The Decline of the Real Estate Markets
The UAE real estate market has seen a major downturn during the late 2000’s global meltdown. Dubai is like one of the parts of a chain reaction where each piece triggers the next and sinks the results of recession deeper in the system. Real estate projects in the UAE were halted, making this market less attractive for investment.

While the real estate sector is being on the brink of revival lately, this will still take a long time and require a lot of synergy among major business players in the UAE. Traders and investors have shifted their focus to currency trading because of this. 

Trend #4: The Volume of Gold Trades Continues To Increase

Gold is considered as one of the star performers for traders in the Middle East and all over the world this 2012. Gold has gained about 480% in 10 years in the UAE gold market. There has been an increase in the annual prices in each year with an average annual return of 20% per annum. Gold is usually traded against the US currency and is known to perform well. However, this has generally been the case in a wide range of currencies during the period of 2001 to 2011 and continues to be performing well this year.

For people who are considering trading Forex, it is helpful to consider these trends in addition to the potentials of Forex trading in general. One should also know that the best forex broker is not to jump into the bandwagon of FX trading blindly but by understanding the big picture.

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