5 growth stocks to watch in the UAE in 2025: analysis and market outlook

What are growth stocks?

Growth stocks are the shares of companies that are expected to grow at a pace that significantly outperforms the average market. Stock traders hope to see capital gains because the growth stocks are expected to rise in value exceptionally quickly.

Growth stocks are often found in the technology industry, holding patents or innovations that capture a large portion of the market – or when a significant amount of market share is still available.

Do growth stocks pay dividends?

While it’s not a strict rule, growth stocks usually don’t pay dividends. Instead, the companies reinvest their profits back into the business, which helps them expand at a quicker rate. Stock traders might hope for dividends in the future, though, once growth has slowed and the company has stabilised. However, this could take years to happen.

Price-to-earnings ratios: are growth stocks overpriced?

While growth stocks can often have high price-to-earnings (P/E) ratios, a deeper look reveals that they’re expected to generate high earnings in the future – or so stock traders hope. So, in reality, the shares can often be bought at a bargain compared to what their future value will be.

It’s important to remember that all stock trading carries an element of risk, and no company’s shares are a sure thing.

UAE growth stocks vs international markets: 2025 comparison

UAE growth stocks offer distinct advantages for investors seeking diversification beyond traditional Western markets. Here's how they compare to international alternatives in 2025:

UAE advantages for growth investors

• Economic transformation: Vision 2071 initiatives are creating new growth sectors in artificial intelligence, renewable energy, and space exploration¹⁶ This government-led diversification provides multiple growth opportunities beyond traditional oil dependence.
• Strategic location: UAE serves as a bridge between Eastern and Western markets, benefiting from trade relationships with Asia, Europe, and Africa.¹⁷ This geographic advantage supports sustained economic growth
• Government backing: direct state support for major corporations like First Abu Dhabi Bank and ADNOC Distribution provides stability rarely found in other markets¹⁸

When UAE growth stocks suit your portfolio

UAE growth stocks particularly benefit investors seeking:

• Exposure to Middle Eastern economic expansion
• Diversification from Western market correlation
• Access to government-supported enterprises

However, consider that UAE markets typically have lower liquidity than major international exchanges, which may affect transaction speed during volatile periods.¹⁹

Advantages of growth stocks

There are numerous advantages to stock trading growth stocks. Here are a few:

• There’s great potential for high returns. If growth stocks expand as the market expects them to, big profits can be made
• Due to the nature of growth stocks, the companies behind them typically contribute positively to economic growth and technological advancement
• Growth stocks often belong to innovative companies – as you’ll see in our list below, three of the five picks are tech businesses. By investing in these stocks, you’re helping to contribute to technological progression

Risks of growth stocks

Just as important as the advantages are the risks of growth stocks. Here are a few notable ones:

• Because stock traders often pay a premium for growth stocks, if the expected growth doesn’t occur, investors can lose their funds
• They don’t pay dividends as a general rule, which can be a positive or a negative, depending on how you look at it. On the one hand, you don’t realise dividend earnings on your stock, but on the other, profit is reinvested to continue to drive growth
• Stock traders face a higher risk than, say, value stocks, with growth stocks, as they’re often volatile, and there’s no guarantee that the projected profits will materialise

Top 5 growth stocks to watch

We’ve chosen these five growth stocks for a number of reasons, including:

• Current and future earnings outlooks
• Connection to the latest technology (think AI), which is growing at an astounding pace
• Regional and international exposure for UAE investors
• Companies benefitting from the move away from an oil-based economy in the UAE
• Subscription-based business models and long-term contracts for some companies, like Microsoft and Palantir

1. First Abu Dhabi Bank (ADX: FAB)

Industry: Banking

Market cap: AED 154 billion²⁰

Current focus: Corporate and investment banking and personal banking

FAB is the UAE’s largest bank and the second largest in MENA by total assets. It also has the best regional credit rating among banks at AA-.²¹

It operates 63 offices in the UAE and has a global presence across 20 markets, with over 4 million customers.²⁰

It’s a key player in the UAE’s Vision 71 initiative, which aims to achieve economic diversification, moving away from an oil-based economy. With this goal, the bank is poised to grow with the UAE’s economy in the coming years.

Highlights:

• Banker to the Abu Dhabi government
• Supports Abu Dhabi’s initiative to develop a more diversified and knowledge-based future
• Pledged AED 500 billion by 2030 to the sustainable finance commitment in the UAE²

2. Abu Dhabi National Oil Company For Distribution (ADNOC Distribution) (ADX: ADNOCDIST)

Industry: Energy and retail

Market cap: AED 44.5 billion²²

Current focus: Fuel distribution and convenience stores

Founded in 1973, ADNOC Distribution operates just over 650 fuel stations and over 370 convenience stores^{23, 24} across all seven Emirates in the UAE. It also has operations in the Kingdom of Saudi Arabia (KSA) and Egypt.  

With a $60 billion joint venture with Austrian company OMV,²⁵ the company has strengthened its lead in the petrochemical industry. It also has major expansion plans, including unlocking new revenue streams through sustainability goals, the likes of which include electric vehicle (EV) charging.⁵

An exception to the general rule, this is a growth stock that pays dividends to its shareholders – to the tune of $700 million in 2024.²⁴

Highlights:

• Aims to achieve a 25% reduction in scope 1 and 2 emissions intensity by 2030²⁴
• Initiatives to deliver a 50% increase in non-fuel transactions by 2028²⁴
• Looking to scale up its franchise businesses

3. Microsoft Corporation (NASDAQ: MSFT)

Industry: Technology

Market cap: $3.66 trillion²⁶

Current focus: Software, cloud computing, gaming and AI services

Microsoft, which was founded in 1975 by Bill Gates and Paul Allen, began as a software company but has developed into a technology giant.

It’s an example of an established business that still has the potential to be a growth stock. Now might be a particularly good time to look at stock trading its shares, as it’s seen a decline over the past six months.

With that in mind, its cloud platform, Azure, is seeing strong growth, competing with Amazon Web Services and Google Cloud Platform. Similarly, its position in AI is compelling, especially due to its history of operating with the US Defence and in Intelligence missions.

Highlights:

• Serves both commercial and governmental markets with sophisticated AI solutions
• Its business model relies on continuous subscription renewals, which provide predictable cash flows
• Despite recent volatility, Microsoft is poised for growth with its multiple revenue streams

4. Broadcom Inc (NASDAQ: AVGO)

Industry: Technology

Market cap: $1.24 trillion²⁷

Current focus: Semiconductor and infrastructure software solutions

Broadcom Inc supplies a wide range of semiconductor devices, focusing on complex digital and mixed-signal complementary metal oxide semiconductor-based devices, and others.

It offers a wide array of services, some of which include:

• Cybersecurity
• Enterprise software
• Mainframe software
• Broadband
• Networking/connectivity
• Wireless

In FY24, it enjoyed a net revenue of $51.6 billion and spent $9.3 billion in research and development (R&D) in the same year. It also has a broad IP portfolio of around 20,000 patents.²⁸

Highlights:

• Chips and software solutions are integral to the networking equipment that connects data centres to enable high-speed data processing
• Consistent demand for its semiconductor products
• Offers exposure to multiple high-growth technology sectors

5. Palantir Technologies (NASDAQ: PLTR)

Industry: Technology

Market cap: $319.61 billion²⁹

Current focus: Big data analytics and AI software

Founded in 2003, Palantir Technologies specialises in data analytics, building software platforms for integrating, managing and analysing large-scale data sets.

It serves government agencies, defence organisations and commercial businesses; Palantir Gotham is for government use, whereas Palantir Foundry is for commercial use.

It reported Q1 2025 revenue growth of 39% year on year, with a 55% US revenue growth during the same period.³⁰

Investment highlights:

• In Q1 2025, it closed 139 deals of at least $1 million, 51 deals of at least $5 million and 31 deals of at least $10 million³⁰
• Partnered with Microsoft to deliver enhanced analytics and AI services for national security operations
• Holds long-term contracts with government agencies, signalling stable future income

How to trade growth stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for growth stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for growth stocks available for direct ownership
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about growth stocks

Footnotes

1. UAE Federal Tax Authority, Personal Income Tax Guidelines 2024
2. US Internal Revenue Service, Tax Brackets 2024
3. HM Revenue & Customs, UK Tax Rates 2024-25
4. UAE Federal Tax Authority, Corporate Tax Law 2023
5. US Internal Revenue Service, Corporate Tax Rate 2024
6. HM Revenue & Customs, Corporation Tax Rates 2024
7. Abu Dhabi Securities Exchange, Market Volatility Report Q1 2025
8. CBOE Volatility Index (VIX), 2024 Average
9. FTSE 100 Volatility Index, 2024 Data
10. Central Bank of UAE, Exchange Rate Policy 2024
11. Bank of England, Sterling Volatility Post-Brexit Analysis 2024
12. UAE Ministry of Economy, GDP Growth Report 2024
13. US Bureau of Economic Analysis, GDP Growth Q4 2024
14. UK Office for National Statistics, GDP Growth 2024
15. OECD Tax Database, Comparative Analysis 2024
16. UAE Vision 2071 Official Documentation
17. Dubai Chamber of Commerce, Trade Statistics 2024
18. Abu Dhabi Investment Authority, State Enterprise Report 2024
19. Dubai Financial Market, Liquidity Analysis 2024
20. FAB 2025 Q1 at a glance, Q1 2025
21. FAB, June 2025
22. Reuters, June 2025
23. ADNOC Distribution, June 2025
24. ADNOC Distribution, June 2025
25. Insider Monkey, March 2025
26. Trading Economics, June 2025
27. Broadcom, June 2025
28. Broadcom at a Glance, June 2025
29. Trading Economics, June 2025
30. Palantir Technologies, quarterly report Q1 2025, May 2025
31. TradingView, June 2025 data
32. Yahoo Finance and MacroTrends, 27 June, 2025
33. MacroTrends and CompaniesMarketCap.com, June 2025
34. CompaniesMarketCap.com, June 2025 data