AED7 billion net institutional investment in UAE stocks during 2023

ABU DHABI/ WAM

Institutional investors have notably boosted their acquisition of domestic stocks in 2023, enticed by the diverse investment prospects and the opportunity to engage in the strong expansion of the country’s economy. Furthermore, prominent global and regional institutions consider local listed companies highly attractive for their investment strategies.
Data from the Abu Dhabi and Dubai markets reveals that institutional investors achieved a net purchase of nearly AED 7 billion (US$1.9 billion) in local stocks from January to December 2023. This figure reflects a total purchase of AED 302.7 billion compared to total sales of approximately AED 295.8 billion.
The substantial rise in institutional investment in local equities underscores strong confidence in UAE markets, their promising future growth prospects, and the attractive investment opportunities they offer due to the country’s solid economic foundations and the impressive performance of its operating companies. This surge in institutional interest coincides with ongoing efforts by the markets to attract more foreign and institutional investments, aiming to diversify liquidity across local, foreign, institutional, and individual investors.
Institutional investors dominated the UAE equity market in 2023, capturing nearly 78 percent of total trading activity. This significant buy-in from institutional players demonstrates their heightened confidence in the UAE’s economic prospects, driven by the diversification of investment opportunities and compelling performance of listed national companies.
In the Abu Dhabi Securities Exchange (ADX), institutional investors achieved a net investment exceeding AED 6.1 billion year-to-date. This robust appetite was fuelled by cumulative purchases of AED 253.9 billion, marginally exceeding sales of AED 247.8 billion.
The highest net purchase value in the ADX was recorded in February, reaching approximately AED 2.3 billion, followed by AED 100.3 million in January, AED 1.02 billion in March, AED 587.1 million in April, AED 566.7 million in May, AED 680 million in June, AED 759.8 million in July, AED 187.04 million in August, AED 293.3 million in September, AED 132.4 million in October, and AED 254.9 million in November.
In the Dubai Financial Market, institutional investment achieved a net purchase value of AED808.1 million.
The local financial markets expect increased institutional investments in the upcoming months. This is due to the numerous investment opportunities available in shares of financially stable companies, which are trading at appealing price levels for both local and foreign portfolios.
The country’s financial markets are collaborating with listed companies and international investment banks to host global investor conferences. The goal is to bolster connections, review business advancements, and discuss growth strategies with global investment institutions. This effort ensures open communication channels, sustaining a strong presence of institutional and foreign investments in the markets.