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Surge in Institutional Investments Signals Confidence in UAE Markets

Because of the varied investment prospects, institutional investors have greatly boosted their acquisition of domestic equities in 2023.

Institutional investors have significantly increased their acquisition of domestic stocks in 2023, driven by the diverse investment opportunities and the country’s robust economic expansion, attracting global and regional institutions to view locally listed companies as highly attractive for their investment portfolios.

Data from Abu Dhabi and Dubai markets highlights institutional investors’ substantial net purchase of nearly Dh7 billion in local stocks from January to December 2023. 

This robust figure, totaling Dh302.7 billion in purchases against Dh295.8 billion in sales, underscores their growing confidence in UAE markets.

Confidence in Market Prospects:

The increased institutional investment, dominating 78% of total trading activity in 2023, reflects their confidence in the UAE’s economic future. 

This confidence stems from the country’s solid economic foundations, promising growth prospects, and the impressive performance of listed companies.

In the Abu Dhabi Securities Exchange (ADX), institutional investors saw a net investment exceeding Dh6.1 billion, with notable monthly highs in purchases throughout the year. 

Similarly, institutional investment in the Dubai Financial Market (DFM) achieved a net purchase value of Dh808.1 million, indicative of their continued interest.

Future Outlook and Collaborations:

The local financial markets anticipate a further uptick in institutional investments in the coming months. 

Collaborations between financial markets, listed companies, and international investment banks aim to foster connections, discuss growth strategies, and host global investor conferences, ensuring sustained interest from institutional and foreign investors in UAE markets.

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