Dubai: A dramatic leap in investor sentiment in the UAE drove confidence up in all Gulf markets last month, the GCC Investor Sentiment Report by Shuaa Capital showed yesterday. The investment bank's GCC Investor Confidence Index gained a massive 15.2 points, its second biggest ever gain on record.
The results of the index were almost entirely driven by a dramatic, positive change in investor sentiment towards the UAE. Following the Dubai World restructuring proposal that was announced on March 25, the UAE Investor Confidence Index recorded a significant jump of 36 points to 120.4.
A number greater than 100 represents positive sentiment while a number lower than 100 represents negative sentiment.
Uncertainty clears
Sameer Al Ansari, CEO of Shuaa Capital, said: "The increase in investor confidence towards the UAE clearly indicates that the cloud of uncertainty hanging over the investment community has now been removed.
"The outcome of Dubai World's restructuring proposal has had a very positive impact on the investment community, both regionally and internationally.
"At Shuaa, we are confident that we can benefit from improved investor sentiment as our fee generating business lines — investment banking, brokerage, asset management, and private equity — are very well-positioned for a sustained market recovery."
Oliver Schutzmann, author of the report and Chief Communications Officer at Shuaa Capital, said: "The UAE has clearly been a driver of sentiment across the region for a number of months now and March has been no exception.
"The positive news coming out of the UAE has had a knock-on effect across GCC markets and now all indices are up on February with Saudi Arabia remaining the highest index in the region at 136.3 points."
Despite a bullish outlook, however, survey respondents remain cautious, Shuaa said. Asked if they would be investing over the next six months, only the UAE saw its on balance figure rise, by 27.1 per cent to 7 per cent on balance. entiment towards all other regional markets lost ground and moved into negative territory.
