Ramadan Effect on UAE Stock Market - Banks Sector

Abstract

This was the first paper to study exclusively the effects of Ramadan on the United Arab Emirates Stock market. In doing so, the study aims to establish such impacts with the intention of advising the investors on whether it would be profitable to invest during the holy month of Ramadan or no.The study found that the average returns for banks in ADX, and DFM in Ramadan is less than the usual average in the period 2008-2013. Similarly, the foretasted return using regression. This result reflect the economy slow down during Ramadan as mentioned in literature review, the percentage of slowing down about 0.98%. This slow down percentage demonstrates the hypothesis of Ramadan effect, so the investors can gain profit if they follow recommended days, and dates.