By: Mahmoud Gamal
Mubasher: There are ten factors that could attract foreign investments in the UAE bourses amid the consecutive government decisions to encourage global investments in the country’s different economic sectors, analysts told Mubasher.
By the end of last week, the Abu Dhabi Securities Exchange (ADX) fell 1.4% to 4.984.74 points, while the Dubai Financial Market (DFM) shed 0.86% to 2,754.91 points.
Despite the bearish trend seen by both the ADX and the DFM, foreign and GCC-investors were mostly buyers, netting AED 166 million, and the institutional investors also logged purchases worth AED 108 million.
On Saturday, the UAE Cabinet yesterday approved five-year or ten-year residency visa for major investors, outstanding students, and researchers.
Ehab Rashad, CEO of Al Safwa Mubasher, said that the recently announced sovereign decisions will attract further foreign investments to the UAE stock markets.
The supervisory entities’ recent efforts aim to diversify new financial systems and create fresh financial products, Rashad indicated.
He added that the entities are seeking to launch real estate investment trusts (REITs) in the near future in a bid to attract a new segment interested in this sector to the stock market.
The resumption of sukuk and bonds business may also lure overseas investors and new listings to the local bourses, he highlighted.
He further noted that the UAE is politically stable, which is one of the factors that will lure further foreign investment in the markets.
Gaining confidence
For his part, the CEO of MindCraft Consultants Fadi Al-Ghattis said that purchases by foreign traders in the UAE’s twin bourses are a positive sign despite the recent unjustified downward trend.
The stock markets needed these recent sovereign decisions to resume the bullish trend and regain investor confidence, Al-Ghattis indicated.
This will attract more foreign investments in the markets as the indices have hit attractive levels that represent good investment opportunities, he pointed out.
As for Sunday’s trading session, he noted that the indices of the UAE’s bourses may witness a slight fall on the back of the drop in global markets and the decline in oil prices.
Translated by: Mai Ezz El-Din
