x Abu Dhabi, UAEWednesday 26 July 2017

UAE markets remain stagnant

The UAE's markets have yet to recover from low liquidity and trading volumes that has persisted since the onset of a property downturn.

Plummeting liquidity and volumes in the UAE have left markets stagnant since the onset of the property downturn.

The total value of shares traded has fallen by more than half in Dubai and Abu Dhabi.

Volumes have been affected as a result, with the number of shares traded across the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange and NASDAQ Dubai all slipping by more than 50 per cent.

The DFM was the main loser as it experienced a 65 per cent drop in traded volume over the past year.

In a market driven by the daily trade of retail investors, who typically create liquidity and volume, the lack of confidence in the region has also affected market movement.

But negative sentiment towards the heavyweights in the property and banking sectors has been the most detrimental to liquidity.

Emaar Properties is a case in point. Shares in the builder of the world's tallest tower have fallen more than 76 per cent since the boom year of 2008.