In 2023, institutional investors play a pivotal role in bolstering their holdings in UAE stocks, enticed by diverse investment prospects and robust economic growth. The data from both the Abu Dhabi and Dubai markets showcase institutional investors’ net purchase reaching nearly Dh7 billion throughout the year.
Confidence in UAE Markets
The substantial increase in institutional investments reflects heightened confidence in UAE markets, propelled by promising growth prospects and lucrative investment opportunities. The surge aligns with ongoing efforts to diversify liquidity across various investor categories.
Institutional Dominance
Institutional investors take the lead, contributing to nearly 78 percent of total trading activity in the UAE equity market in 2023. This dominance underscores their trust in the UAE’s economic outlook and the strong performance of listed national companies.
ADX and DFM Highlights
In the Abu Dhabi Securities Exchange (ADX), institutional investors achieve a net investment exceeding Dh6.1 billion, driven by cumulative purchases slightly surpassing total sales. Noteworthy net purchase values are recorded across various months, showcasing sustained interest.
In the Dubai Financial Market (DFM), institutional investment nets a purchase value of Dh808.1 million. Expectations are high for continued institutional interest in the upcoming months, leveraging investment opportunities in financially stable companies.
Prospects and Collaborations: Institutional
The country’s financial markets actively collaborate with listed companies and international investment banks, hosting global investor conferences. This collaborative effort aims to fortify connections, review business advancements, and discuss growth strategies with global investment institutions.
Outlook for 2024
Anticipations are positive for increased institutional investments in the coming months, supported by a plethora of investment opportunities in shares of financially stable companies, appealing to both local and foreign portfolios.
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