UAE Stock Market Efficiency Confirmed, Boosting Investor Confidence.
The study looked at stock prices in the United Arab Emirates market. They used data from 43 stocks over a two-year period and found that most of the stock returns were random. This suggests that the UAE stock market follows the weak-form Efficient Market Hypothesis, meaning stock prices reflect all historical market information. This is surprising because the market is new and small, but improvements by authorities may have contributed to this efficiency. Further research is needed to confirm these results.