Institutional investment in UAE stock markets tops Dh8 billion since start of 2023
Total purchases by these investors amounted to Dh232.15b, while sales were Dh224.2b
Abu Dhabi: Institutional investors are optimistic about the UAE stock market, as evidenced by their net purchases of nearly Dh8 billion in local shares during the first nine months of 2023. This trend is driven by a number of factors, including the availability of broader investment opportunities, the strong growth trajectory of the national economy, and the attractiveness of listed national companies.
Total purchases of local shares by institutional investors amounted to Dh232.15 billion, while total sales were Dh224.2 billion, according to data from the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM).
The significant increase in institutional investments in local shares is a reflection of the growing confidence in the UAE markets and their future growth prospects. This confidence is driven by the strength of the UAE’s economic fundamentals, the strong performance of the companies operating in the country, and the attractive investment opportunities that the markets offer.
Institutional investment accounted for about 78 per cent of total trading (buying and selling) in both markets since the beginning of this year, while individual investments accounted for a share of about 22 per cent.
Institutional investors have bought more Abu Dhabi stocks than they have sold since the beginning of the year, resulting in a net investment of Dh6.45 billion, after recording purchases worth Dh195.64 billion against sales of about Dh189.18 billion.
ADX saw the highest net purchase value in February at Dh2.3 billion. In January, the number stood at Dh100.3 million, 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, and Dh326.8 million in September.
In the DFM, institutional investment achieved net purchases worth Dh1.48 billion since the beginning of this year after purchases worth Dh36.5 billion against sales of about Dh35.02 billion.
Local financial markets are expecting more institutional investments due to their rich investment opportunities and attractive price levels. The markets are also cooperating with listed companies and global investment banks to organise global investor conferences to showcase the developments of the listed companies’ businesses and their growth strategies to global investment institutions. This will contribute to keeping the markets active with institutional and foreign investment.