The long-term stable economic outlook, growth in FDI, strength of the UAE’s banking sector and expected increase in nominal GDP (Gross Domestic Product) make Abu Dhabi one of the best opportunities for long-term investment in the Middle East according to Rashed Al Baloushi, Acting Director General of Abu Dhabi Securities Market (ADSM).
Speaking at the UAE Asia Investment Forum in Singapore, Mr Al Baloushi said that Abu Dhabi and it’s stock exchange welcomed foreign investors and was continuing to implement international best practice standards across the market.
“The UAE is now the 2nd largest economy in the Arab world and Abu Dhabi offers one of the most attractive long-term investment opportunities”, he said.
“Nominal GDP in the UAE is expected to grow from US$132 billion in 2005 to US$201.4 billion in 2010 and Abu Dhabi’s economic diversification programme has led to significant growth in the tourism, healthcare, real estate, manufacturing and heavy industry sectors.
“The growth in the financials sector has been particularly strong with net profits for banks rising by over 150%, from US$990 million in 2004 to US$2.5 billion in 2005 in correlation with the total market net profit for all listed companies which increased by 118% from US$2.6 billion in 2004 to US$5.6 billion in 2005
Mr Al Baloushi went on to explain why ADSM is becoming the international exchange of choice for the region and highlighted details of the exchange’s international best practice programme which is improving the levels of regulation, corporate governance, investor education and professionalism for brokers operating in Abu Dhabi.
“ADSM is not only the most attractively valued exchange in the region, with a market p/e (price to earnings) ratio of 11.4, but we are also the leading exchange in terms of best practice standards. This is why we are recommending Asian companies dual list on the Abu Dhabi market and institutional investors consider the opportunities here.
“Foreign investors can now buy shares in over 50% of our listed companies and over 40% of ADSM investors are from outside the UAE.
“Through electronic links and cross-listed companies, investors can diversify their portfolios. Our network of international partner exchanges is growing and we look forward to working further with the Singapore Exchange.”
Since the end of 2001 the number of listed companies on ADSM has grown fourfold; there are now nearly six times as many brokerage firms; market capitalisation is 20 times higher; there are 50 times as many shareholders registered and ADSM is a model emiratisation employer with UAE nationals making up about 74% of the team head count.
