New listings on the Dubai market increased demand for local stocks

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A number of economists, experts and analysts in the financial markets have confirmed that the new listings on the Dubai Financial Market have attracted more international investors and boosted demand for local stocks thanks to the many benefits they enjoy, which they ‘ make a safe haven for investment. They added that the markets performed best in the region last year, noting that the main influential sectors such as banking, real estate and telecommunications are attracting investors’ attention.

This came during the session “New listings.. Strengthening the markets and promoting liquidity” via the “Al Bayan” website on Twitter, in which Hamad Al-Awadi, an economist, businessman and former member of the Abu Dhabi -chamber’s board of directors, and Waddah Al-Taha, a financial expert and member of the Institute’s National Advisory Board, participated in the session. British Investment and Securities in the UAE, Muhammad Ali Yassin, expert on local financial markets , Dr. Abdullatif Al-Azazi, economist and entrepreneurship advisor, Ziad Al-Qaymari, economist and financial analyst, and the meeting was moderated by Mary Salem, a financial analyst, “Al Sharq Channel.”

Hamad Al-Awadi, an economist, businessman and former member of the Abu Dhabi Chamber’s board of directors, said that many investors have found the UAE a safe haven for investors, pointing out that the UAE has managed to coped with many crises such as the global financial crisis and the “Corona” pandemic and its economic consequences and was able to overcome them. Which drew the attention of investors around the world to the capabilities and capabilities of the state.

He pointed out that there has been a development in many procedures and legislation and the amendment of some laws, including: allowing full ownership by foreigners, granting golden residences in some cases, and other procedures and laws through which the state positively sent messages to local and foreign investors that the UAE is a land of opportunity and investment. Moreover, these procedures, legislation and laws have had a positive impact on the local financial markets in the short and long term.

He added: The figures give positive indications of investor confidence in the UAE economy, as the capital markets are a mirror of the national economy in general. He pointed out that the new listings provided a strong impetus and created the required depth in the UAE’s financial markets.

Trading volumes

Wadah Al-Taha, a financial expert and a member of the National Advisory Board of the British Investment and Securities Institute in the UAE, confirmed that the local markets have delivered the best performance in the Gulf region over the past year, indicating the high volumes of trading in local markets during the first half of 2022 compared to the same period last year. Regarding the timing of the listings and whether it was appropriate, Waddah Al-Taha said: We measure listings by the trading values ​​that increased in the first half of 2022 compared to the first half of last year. He added that deposits in local banks exceeded 2 trillion dirhams, of which 1.7 trillion were deposits for residents, and these are indications that there is no shortage of liquidity.

On the main market sectors that saw activity and momentum in the Dubai and Abu Dhabi financial markets during the first half of this year, Waddah Al-Taha emphasized that the main influential sectors such as banking, real estate and communications are capturing the investor’s interest. , and delivered strong results in the first and second quarters of 2022.

He explained that the banks achieved strong results, noting that the performance of the UAE banks was good regardless of the interest rate hike in the US Federal Reserve. He said: The economic cycle in the UAE is different from the United States, so raising interest rates in the United States is not in line with the UAE economic cycle, pointing out that continuing to raise interest rates does not necessarily lead to to an increase in profits.

subscription

Mohamed Ali Yassin, an expert on local financial markets, confirmed that the new listings in the Dubai market are necessary to attract more investors to the market.

Muhammad Ali Yassin said: It is noticeable that individuals have played a large and important role in the process of subscribing to the new listings, and this reveals the type of investor, be it individuals or institutions, indicating that it is necessary to look carefully at the source of liquidity, and if it comes from individuals, new doors are opened for them. He emphasized that there is a great demand, but the pricing of listings and the pricing and evaluation of companies must be in line with investors’ appetite for risk. He added that since the beginning of the year, the local markets have seen a state of activity until the end of April 2022, and there has been a continuous rise and the injection of large liquidity into the markets that has come from foreign investors, who are mainly raised the markets. to high levels.

Muhammad Ali Yassin indicated that there is liquidity seeking investment opportunities in the UAE markets, and this liquidity is part of it local and the other is foreign, and we must take advantage of these opportunities.

He explained that the UAE financial markets have many advantages that attract foreign investors, and we must take advantage of the positive environment in the UAE compared to the Gulf and European markets, which are not so positive, and we must continue this issues. , but they need to be within a better price that keeps pace with what we see in the market to improve the chances of success of new releases.

Muhammad Ali Yassin emphasized that the UAE has succeeded in managing its investment sector through legislation and the opening of sectors for foreign investment, and this has contributed to attracting large international investment funds directly and indirectly to the UAE market.

Yassin said: “The growth rate announced by the Central Bank in the first quarter of this year in relation to the economy was 8.2%, which is evidence that the UAE economy is growing positively.

He pointed out that the companies listed in the markets are still mostly governments, which gives security to investors and attractiveness to the high yields distributed by the government. Global investment funds are under pressure, and there are huge opportunities to enter the UAE market, where there is the appropriate legislative environment and the right climate for business to thrive.

Yassin added: The recovery of the UAE markets since last year came as a result of the government’s insight in making decisions to list state-owned companies in the markets. He explained that the new listings have already proven the success of the UAE’s policy to attract foreign investment, pointing out that the country has opened up new sectors that were closed to foreign investment.

Deduction timing

Dr. Abdullatif Al-Azazi, an economist and an entrepreneurial consultant, emphasized that the timing of the new listings was appropriate, and that the UAE market has many opportunities and liquidity available.

He said: The timing of the presentation is very good and has been carefully chosen, as global markets are going through a state of anxiety due to the “Covid 19” pandemic, and the UAE market needs diversity, and the new listings have added diversity , depth and opportunities that the investor is looking for, as the UAE is an attractive country for investment and a fertile and reliable country And to witness economic developments that give hope to move the market.

He stressed that the new listings are a real opportunity, and the timing of the presentation requires courage, and the step was taken, and its results appeared quickly, and the positive signs were clear.

Dr. Abdullatif Al-Azazi said there are well-known economic rules such as the rule of supply and demand, as the government facilitated procedures and enacted laws and legislation in accordance with a government plan for development and inclusion. He added: “Don’t list a company for nothing, but there are objectives for listing.” He pointed out that many companies will reuse liquidity in new projects, which will reflect positively on the financial market and the economy in general.

law

Ziad Al-Qaymari, an economist and financial analyst, said: The new UAE legislation has clearly supported the local financial markets. He added: The UAE economy is strong, and the financial markets have made clear gains during the first months of 2022.

He pointed out that the new listings in the Dubai market achieved the required diversity of sectors within the market and attracted new investments. He explained that by looking at the markets, it will become clear that individuals control 54% of the trade value, pointing out that the quality of listings in the Dubai market and the way they are evaluated still need more time. Ziyad Al-Qaymari emphasized that the success of the UAE markets is due to the leadership’s acceptance of supporting the economy, and the markets in particular, which has had an impact on the profits made.

profit

Mary Salem, for her part, confirmed that the UAE shares achieved significant gains during the first half of this year, despite the fluctuations in the global financial markets due to fears of economic stagnation generated by the continuous increase in interest rates, and efforts to control and control inflation rates.

Mary Salem indicated that the UAE financial markets recorded a strong performance during the first half thanks to the new offers and listings that the two markets saw, such as: “Dewa” and “Tecom” and recently the “Union Cooperative” in Dubai listed , and “Abu Dhabi Ports”, “Borouge”, Vertiglobe, ADNOC Drilling, Alpha Abu Dhabi and Multipleplay in Abu Dhabi, which boosted international investor demand for local stocks.

She added that the capitalization of the two markets at the end of June 2022 amounted to 2.519 trillion dirhams, an increase of about half a billion dirhams, as the capitalization reached about 2.038 trillion dirhams at the end of December 2021, with ‘ a growth rate of 23.6%. She indicated that liquidity amounts to 260.6 billion dirhams and more, attracted by the UAE stock markets during the first half of 2022, in addition to 14.3 billion dirhams, the sum of foreign investors’ purchases during the first half of this year, at 12.43 billion in the Abu Dhabi market, and 1.84 billion in the Dubai market. The trading volume during the first half reached 53.8 billion shares, including 34.2 billion shares in “Abu Dhabi”, and 19.6 billion shares in “Dubai”, through 1.95 million transactions.

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