In 2023, investments in UAE markets by institutional investors increased. From January to September, net purchases of shares (purchases minus sales) amounted to almost AED 8B (USD 2.2B). This is due to the expansion of investment opportunities, the country’s overall economic growth trend, and the strong performance of local companies and their attractiveness to investors.
According to data from the UAE’s two leading stock exchanges, Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), institutional investors bought AED 232.15B (USD 63.2B) worth of shares in local companies and sold AED 224.2B (USD 61.5B).
Stock trading in the UAE from January to September of 2023:
Stock Exchange | Purchases | Sales | Net Purchases |
ADX | AED 195.64B (USD 53.27B) | AED 189.18B (USD 51.5B) | AED 6.45B (USD 1.76B) |
DFM | AED 36.5B (USD 9.9B) | AED 35.02B (USD 8.7B) | AED 1.48B (USD 0.4B) |
Overall, institutional investments accounted for 78% of all trade transactions (purchases and sales), while private investments made up the remaining 22%. This indicates strong prospects and high confidence for further growth in the UAE markets from major players.
Institutional investment in the financial markets in the UAE is expected to continue to increase thanks to attractive price levels and forecasts for further growth.