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Growth indicates a steady capital inflow into the two markets due to the increased investor confidence in UAE capital markets
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Jan-May investments by Arabs hit AED 2.945 billion
Abu Dhabi: The net investments of non-Arab investors in UAE financial markets significantly jumped to AED3.255 ($87m) during the first five months of 2021, said a WAM report quoting statistics revealed by the Abu Dhabi and Dubai bourses.
The growth reflects a steady capital inflow into the two markets since the beginning of the year due to the increased investor confidence in the UAE capital markets.
This confidence has been boosted by lucrative dividend yields paid out by the listed companies, considered the highest in the Gulf and the Middle East.
Cash dividends distributed by these companies surged to over AED41 bn for 2020, according to the Securities and Commodities Authority.
Also, the Abu Dhabi Securities Exchange saw net investments by Arabs hitting AED2.945 bn from January through May– AED44.752 bn in purchases and AED41.807 in sales. This segment of investors accounted for 38 percent of total trades in the capital’s bourse, which amounted to AED227.639 bn, from January through May.
In Dubai Financial Market, the non-Arabs’ net investments amounted to AED311 million during the reference period: AED7.302 bn in purchases and AED6.991 bn in sales, which accounts for around 30 percent of the DFM’s total trades, estimated at AED47.8 bn during the reference period.