Institutional investors are optimistic about the UAE stock market and have purchased almost AED8bn ($2.2bn) 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 AED232.15bn ($63.2bn), while total sales were AED224.2bn ($61.5bn), according to data from the Abu Dhabi Securities Exchange (ADX), and Dubai Financial Market (DFM).
UAE stock market investments
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 AED6.45bn, after recording purchases worth AED195.64bn against sales of about AED189.18bn.
ADX saw the highest net purchase value in February at AED2.3bn, followed by AED100.3m in January, AED1.02bn in March, AED587.1m in April, AED 566.7m in May, AED680m in June, AED759.8m in July, AED187.04m in August, and AED326.8m in September.
In the DFM, institutional investment achieved net purchases worth AED1.48bn since the beginning of this year after purchases worth AED36.5bn against sales of about AED35.02bn.
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.
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