Net foreign investment in the Abu Dhabi Securities Exchange (ADX) has reached Dh3.12 billion so far this year compared with Dh2bn for all of 2013, according to Al Ittihad, The National’s sister Arabic newspaper.
About Dh2.16bn of that amount was pumped in by non-Arab investors, Dh649.8 million by Arabiab Gulf investors and Dh311.7m by Arab investors, the figures showed.
In an interview with Al Ittihad, Rashed Al Balooshi, the chief executive of the ADX, said that the UAE’s financial markets remain strong and have scope for further investment opportunities, supported by a strong national economy and the sustained growth of all economic sectors.
“These figures reflect a growth in net foreign investment of 56.1 per cent in less than six months in 2014 compared with a total of Dh2bn in 2013,” said Mr Al Balooshi. “This growth exceeds 212.2 per cent compared to 2012, where it reached about Dh1bn.”
The UAE’s stock markets – Dubai Financial Market and the ADX – rallied strongly last year and have so far this year, making them among the best performing markets in the world. The DFM has gained 33.24 per cent and the ADX 11.97 per cent year to date.
Since stock prices have risen strongly it was a natural and logical consequence that usually allows an increase in the flow of liquidity to the market, with a greater focus on investment rather than speculation, Mr Al Balooshi said.
He also added that the inclusion of stocks from the UAE into the MSCI Emerging Markets Index has given a boost to foreign investment.
Between June 2 and 17, the net foreign investment reached Dh889.9m, of which Dh838m came from non-Arab foreign investors. Net purchases reached Dh2.29bn, while their sales were much lower at Dh1.45bn. “This is further evidence of the extent of the importance of the market for foreign investors,” Mr Al Balooshi said.
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