iShares MSCI UAE ETF

UAE

Market cap $171M

Global market leadership may be shifting again as trade tensions escalate, the U.S. dollar trades at multi-year lows, and gold at all-time highs. This brings back for the second time this year the quest for the best international ETFs. The most recent global outlook from the IMF points to ongoing strengths in emerging markets and developing economies vs. the U.S. and other advanced economies in 2026.

UAE is up by 19% on a YTD basis but has given up some of its sturdy gains since July. UAE's non-oil sector is thriving, making up over 77% of GDP, with strong recent growth and a rebound in the PMI, which had seen a temporary blip due to regional tensions. The ETF's performance is heavily influenced by Emaar Properties and First Abu Dhabi Bank, both of which have robust growth, attractive valuations, and well-rounded dividend profiles.

Global markets have been outpacing US stocks (^DJI, ^IXIC, ^GSPC) and growing at massive rates year-to-date in 2025. Yahoo Finance markets and data editor Jared Blikre — who also hosts the Stocks In Translation podcast — tracks a handful of foreign market ETFs for various countries, including Greece, Japan, Italy, Poland, and Israel.

iShares MSCI UAE ETF offers some exposure to the UAE's impressive economy, one of the most rapidly growing of the past half century. Unfortunately, the ETF's historical performance has been underwhelming compared to the U.S. market, and other single country funds. Its selection of equities represents a poor proxy for the broader Emirati economy, raising concerns about its effectiveness and future prospects.

As global markets spiral from fresh tariff hikes, some emerging markets defy the chaos—surviving and thriving.

iShares MSCI UAE ETF offers decent value and yield characteristics, along with diversification benefits. The Macro outlook is positive, with a burgeoning tourism industry, and continued growth in the Real Estate sector. Despite risks in the region, the UAE remains a good opportunity.