Abu Dhabi, UAEThursday 21 June 2018

Sabah al-Binali: UAE citizens help to push investment momentum

And increasing non-Arab investment in the country is not only a vote of confidence, it is a positive trend

A hazy day at Abu Dhabi's Corniche. The National.
A hazy day at Abu Dhabi's Corniche. The National.

Sabah al-Binali says there is good reason to be optimistic about the investment landcsape so far this year.

My foray into DFM’s historical data unearthed some interesting nuggets, both of which I consider positive.

For the first half of this year, Arab investors, including from the GCC, withdrew a total of Dh1.6 billion from the market while UAE citizens invested a total of Dh421 million. Here is the first interesting bit, the total investments by non-Arab investors was Dh1.2bn. That is remarkable and exactly the kind of statistic we want to see, a more balanced and broader foreign investment profile.

In essence what the above indicates is that the UAE has managed to increase foreign non-Arab investment at a time when oil prices have dropped from historical levels. This is not only a vote of confidence, it is a positive trend.

The second statistic is type of investor, with individuals selling Dh628m to institutions. This, too, is positive as increased institutional investing is key to developing a market, not least because they have a higher tendency to impose corporate governance.

Sabah al Binali is an active investor and entrepreneurial leader with a track record of growing companies in the Mena region. You can read more of his thoughts at al-binali.com

Read more from Sabah al Binali

Investors are falling into a liquidity trap in the GCC

Unexplained departures of company chiefs can raise questions

Abu Dhabi Investment Authority puts in good performance