In the year 2023, institutional investors have markedly intensified their engagement with domestic stocks in the United Arab Emirates (UAE), drawn by the multifaceted investment potential and the chance to partake in the robust expansion of the country’s economy.

Notably, both global and regional institutional giants perceive the listed companies in the UAE as highly appealing for their investment strategies.

Examination of data from both the Abu Dhabi and Dubai markets sheds light on the fact that institutional investors have made a noteworthy net purchase of nearly Dh7 billion in local stocks, spanning from January to December 2023.

This substantial figure encompasses a total purchase value of Dh302.7 billion, surpassing total sales of approximately Dh295.8 billion.

The significant upswing in institutional investment in local equities serves as a testament to the profound confidence in UAE markets.

This confidence is rooted in the promising future growth prospects and the alluring investment opportunities arising from the country’s robust economic foundations and the stellar performance of its operating companies.

This surge in institutional interest aligns with the ongoing initiatives by the markets to attract more foreign and institutional investments, with the overarching goal of diversifying liquidity across various investor categories.

Institutional investors emerged as the dominant force in the UAE equity market throughout 2023, constituting nearly 78 per cent of the total trading activity.

This substantial involvement from institutional players underscores their heightened confidence in the economic prospects of the UAE, propelled by the diversification of investment opportunities and the compelling performance of listed national companies.

 

Delving into specifics, within the Abu Dhabi Securities Exchange (ADX), institutional investors notched up a net investment exceeding Dh6.1 billion year-to-date.

This robust appetite was fueled by cumulative purchases of Dh253.9 billion, marginally eclipsing sales of Dh247.8 billion.

The pinnacle of net purchase value in the ADX occurred in February, reaching approximately Dh2.3 billion, followed by Dh100.3 million in January, Dh1.02 billion in March, Dh587.1 million in April, Dh566.7 million in May, Dh680 million in June, Dh759.8 million in July, Dh187.04 million in August, Dh293.3 million in September, Dh132.4 million in October, and Dh254.9 million in November.

Turning attention to the Dubai Financial Market, institutional investment attained a net purchase value of Dh808.1 million.

Projections for the near future anticipate an escalation in institutional investments in the UAE financial markets.

This optimistic outlook is underpinned by the plethora of investment opportunities available in shares of financially stable companies, trading at attractive price levels for both local and foreign portfolios.

To foster this upward trajectory, the country’s financial markets are collaborating closely with listed companies and international investment banks to organize global investor conferences.

These conferences aim to fortify connections, evaluate business advancements, and discuss growth strategies with global investment institutions.

This concerted effort ensures open communication channels, thereby sustaining a robust presence of institutional and foreign investments in the markets.

 

 

Last Updated: 26 December 2023