Foreign investors execute capital market trades worth Dh218 bn in 2019 in the UAE markets

The net investments by non-Arab overseas investors in the UAE markets rose by 11 times to reach Dh12.5 billion last year. According to official data, there was a remarkable rise in the value of shares traded by overseas investors on the Abu Dhabi and Dubai exchanges in 2019.

Foreign investors executed capital market trades worth Dh218 billion in 2019 in the UAE markets, a rise of 20.4 percent as compared to 2018. The overall volume of trades executed by foreign investors in the Abu Dhabi Securities Exchange amounted to Dh112.75 billion last year, with a net investment of Dh9.54 billion from foreign investors.

The Dubai Exchange too witnessed Dh105.4 billion worth trades executed by foreigners transacted, with a net investment of Dh2.98 billion. While the Abu Dhabi exchange rose to 3.27 during the year and closed at 5,075.77 on Dec 31, the Dubai market fared much better by closing at 2,764.86, 9.3 percent higher during 2019.

In 2013, the UAE markets were elevated to the emerging markets league by index compiler MSCI. This has attracted both active and passive overseas investors, thus resulting in a higher long-term capital growth.

The Securities and Commodities Authority (SCA) has also drafted new policies to entice foreign investors. The SCA, in early 2019, elicited opinions on regulating cryptocurrencies in the nation.

This decision is likely to enhance the digital currency transactions in the second-largest economy in the Gulf region. The new policies will cover all facets of the cryptocurrency industry in the Emirates, starting from token issuance requirements to trading and safeguarding principles, without compromising on investor interests.

It also comprises measures to check money laundering, data security controls and rules on technology governance. The Abu Dhabi Global Market’s Financial Services Regulatory Authority provided a theoretical consent for the launch of three cryptocurrency exchanges to operate in the country.