Abstract
This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges ‘Tadawul’ and ‘Dubai Financial Market’. These stock exchanges are compared in terms of their strengths and weaknesses according to significant economic indicators, alongside essential stock market determinants, all the while highlighting relevant relationships among them. Upon assessment, GDP has a strong influence on the valuation of the market and KSA’s GDP growth in the last two years has been slightly higher than UAE’s growth, affecting projected GDP growth rates. Tadawul performed better than DFM in P/E ratio indicating a higher willingness to invest in the Saudi stock exchange as well as a higher return expectation. DFM’s stocks are highly undervalued. It can be concluded that both stock exchanges are strong and competitive respectfully, and their potential for growth depends on the economic market that they originate from.
Highlights
Micro and macro valuation of stock markets is the process of analyzation of existing markets by using qualitative knowledge in the analysis of secondary data provided by the stock market exchange
This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges in Middle East, Tadawul and Dubai Financial Market
Through analysis of available data, this research aims to compare between stock market exchange systems that are operating in the Middle East, namely the relationship dynamics between Saudi Arabia’s Tadawul exchange in juxtaposition with United Arab Emirates’ Dubai Financial Market
Summary
Micro and macro valuation of stock markets is the process of analyzation of existing markets by using qualitative knowledge in the analysis of secondary data provided by the stock market exchange. This research is intended to identify the fundamentals of stock valuation and utilize them in the macro analysis and micro valuation of two major stock exchanges in Middle East, Tadawul and Dubai Financial Market. Tadawul (TASI) is the stock exchange of Saudi Arabia, founded in 2007, and is supervised by the Capital Market Authority today. Tadawul is the only stock market that is authorized to serve as a stock exchange in Saudi Arabia. The reason for choosing to analyze the Dubai Financial Market in particular against Tadawul stock exchange is because in the recent years its market has flourished, much like the Saudi stock market, into becoming a hub for investment opportunities, being two of the largest stock markets in the Middle East. The implications of this research include the result of the analogy of stock market valuations between the two markets in terms of growth patterns, strengths and weaknesses, economic and stock market indicators, and the interconnectedness of the two
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
