The UAE companies that made it into MSCI’s list

We take a look at the nine UAE companies that have been added to the MSCI benchmark indexes, from their PE ratios to their big picture.
Banks, including First Gulf Bank, account for four of the nine UAE companies joining the MSCI Emerging Markets Index. Jeff Topping / The National
Banks, including First Gulf Bank, account for four of the nine UAE companies joining the MSCI Emerging Markets Index. Jeff Topping / The National

We take a look at the nine UAE companies that have been added to the MSCI benchmark indexes, from their PE ratios to their big picture.

Aldar Properties

Market cap: Dh31.76bn

Free float: 67.9 per cent of total shares

Foreign ownership limit: 40 per cent

52-week price range (and last price): Dh1.60-Dh4.84 (Dh4.04)

Price-earnings ratio: 10.02

In a nutshell: Abu Dhabi’s leading property developer built the Formula 1 racetrack on Yas Island. It had net income of Dh1.49 billion last year on revenues of almost exactly Dh6bn for a profit margin of 24.8 per cent. The company has posted three consecutive annual profits since losing Dh12.65bn in 2010, mainly because of a sharp decline in property values. Aldar last year merged with the smaller Sorouh. Aldar’s biggest investor is Mubadala Development, the strategic investment arm of the Abu Dhabi Government, which owns 29.9 per cent of its shares. Aldar’s weighting in the Abu Dhabi Securities Market Index is 9.9 per cent, third overall.

Arabtec

Market cap: Dh31.5bn

Free float: 70.4 per cent

Foreign ownership limit: 49 per cent

52-week price range (and last price): Dh1.33-Dh7.74 (Dh7.18)

Price-earnings ratio: 57.4

In a nutshell: Arabtec is attempting to make the leap from regional contractor to global player – and in a hurry. Since last September, it has piled up acquisitions and alliances including a partnership with the South Korean companies Samsung Engineering and GS Engineering & Construction, an increase in its stake in Target Engineering to 98 per cent from 60 per cent, and the purchase of the 45 per cent of the UAE-based electromechanical specialist Efeco that it did not already own. Arabtec accounts for 17.9 per cent of the Dubai Financial Market General Index, second overall. Its biggest single shareholder is the company’s chief executive, Hasan Abdulla Ismaik.

DP World

Market cap: $16.43bn

Free float: 19.9 per cent

Foreign ownership limit: No limit

52-week price range (and last price): $14.52-$19.80 ($19.80)

Price-earnings ratio: 25.6

In a nutshell: DP World is a marine terminal operator that owns Drydocks World and runs and owns Jebel Ali, which are deep-water ports that handle most of the country’s container traffic. The Government-owned Dubai World owns an 80.45 per cent stake in the company. DP World handled 14.3 million container units across its portfolio of container terminals in the first quarter. Gross volumes grew 11.6 per cent. DP World’s shares trade in US dollars on the Nasdaq Dubai exchange.

Emaar Properties

Market cap: Dh74.8bn

Free float: 70.7 per cent of total shares

Foreign ownership limit: 49 per cent

52-week price range (and last price): Dh4.59-Dh11.10 (Dh10.45)

Price-earnings ratio: 24.7

In a nutshell: Emaar is the biggest property developer in the UAE, with global projects in countries including Egypt, India and Iraq. It is also known for such buildings as the Burj Khalifa, the tallest tower in the world, and The Dubai Mall. Like most developers, the company was hit hard by the global financial crisis of 2008. UAE property prices fell by as much as 50 per cent in some areas but have recovered significantly over the past year. The company is in the process of selling shares in its malls unit. The Dubai government, the biggest single shareholder, owns 29 per cent of the company.

Abu Dhabi Commercial Bank

Market cap: Dh45.5bn

Free float: 34.9 per cent

Foreign ownership limit: 49 per cent

52-week price range (and last price): Dh4.41-Dh8.20 (Dh8.14)

Price-earnings ratio: 12.2

In a nutshell: ADCB, owned 58 per cent by the Abu Dhabi Government through the Abu Dhabi Investment Council, had total assets of Dh186bn as of March 31. It has more than 542,000 retail customers and 41,000 corporate and small- and medium-sized enterprise customers. The bank has been aggressive in boosting its consumer banking business and in 2010 bought the retail network of Royal Bank of Scotland as banks without scale head to the exit.

National Bank of Abu Dhabi

Market cap: Dh67.4bn

Free float: 30.2 per cent

Foreign ownership limit: 25 per cent

52-week price range (and last price): Dh10.27-Dh15.35 (Dh14.25)

Price-earnings ratio: 14.1

In a nutshell: National Bank of Abu Dhabi is the largest bank by market capitalisation in the UAE and the most profitable in the last quarter with earnings of Dh1.40bn. NBAD, which has the country’s fifth-largest retail banking network, is focusing more on generating fees in other parts of the bank’s business, such as in foreign exchange and trade finance, as well as capturing trade flows between the East and West. Last year the bank hired Alex Thursby from Australia’s ANZ to be the bank’s chief executive. The Abu Dhabi Investment Council owns 69.7 per cent, making it NBAD’s biggest single shareholder.

Dubai Islamic Bank

Market cap: Dh30.4bn

Free float: 65.1 per cent

Foreign ownership limit: 25 per cent

52-week price range (and last price): Dh3.03-Dh8.32 (Dh7.70)

Price-earnings ratio: 15.5

In a nutshell: DIB, which is the UAE’s oldest Islamic lender, said profit in the first three months of the year more than doubled to Dh636.6 million from Dh301.7m in the same period the previous year. DIB, like a number of UAE banks and companies, recently increased its foreign ownership limit to 25 per cent. The bank’s stock has more than tripled since last year as the lender recovered from the global debt crisis. The bank was hit particularly hard because of its exposure to commercial property. The Dubai Government, with 27.9 per cent, is the single biggest shareholder.

Dubai Financial Market

Market cap: Dh29.2bn

Free float: 20.3 per cent

Foreign ownership limit: 49 per cent

52-week price range (and last price): Dh1.30-Dh3.98 (Dh3.65)

Price-earnings ratio: 61.6

In a nutshell: The DFM started operations in 2000, and today Borse Dubai is the biggest single shareholder with a 79.63 percent holding. Shares in the DFM are not only a marker for the market, they are the market itself: DFM is the company that operates the Dubai Financial Market. Talks between the DFM and its counterpart in Abu Dhabi, the ADX, on a merger have been going on for years.

FGB

Market cap: Dh66.89bn

Free float: 82.2 per cent

Foreign ownership limit: 25 per cent

52-week price range (and last price): Dh10.73-Dh17.95 (Dh17.15)

Price-earnings ratio: 13.2

In a nutshell: FGB, the bank formerly known as First Gulf Bank, had the second-best profit among lenders in the first quarter. Its profit jumped 27 per cent to a record Dh1.33bn as a booming economy has businesses and individuals rushing to banks to tap cheap financing. Mubadala Development owns 7.12 per cent, making it the biggest single government shareholder. The bank was established in 1979. It got a fresh management team in 2000, with many of its executives coming from Citibank.

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Published: May 15, 2014 04:00 AM

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