By: Mahmoud Gamal
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) is likely to attract heavy liquidity from the global funds, in line with foreign investors’ quest for raising their ownership in the listed-stocks, analysts told Mubasher.
On Sunday, Abu Dhabi Islamic Bank (ADIB) announced it obtained the approval of the Abu Dhabi Executive Council to allow foreigners to own up to 25% of its shares.
The UAE’s second-biggest sharia-compliant lender said that the decision would be implemented as of Monday, 19 November.
Islamic banks
ADIB’s recent decision will positively impact the Islamic banks in the UAE’s capital and biggest sheikhdom, managing director of asset management at Menacorp Tariq Qaqish said.
Any rise in foreign ownership will boost the local markets’ position in the global indices such as the MSCI Emerging Markets Index, Qaqish added.
Foreign investors are committed to the highest standards of transparency and global laws, which will increase their requests to enter the UAE stock markets, he said.
This step will direct investors toward the strong and attractive UAE stocks, currently being traded at luring prices, he highlighted.
Qaqish indicated that this decision comes in line with the government efforts to boost foreign investments in the UAE in accordance with the recently issued law by the president.
Global investments
For his part, CEO of Al Safwa Mubasher Ehab Rashad said that the increased foreign ownership in the ADX-listed stocks is a positive step that will boost cash inflows from global investment funds.
He depicted local firms’ tendency to raise foreign ownership as a historic step that will remarkably contribute to their weight in the global indices.
This decision will improve the efficiency of the local markets and boost trading as a result of communicating with major international financial funds, Rashad added.
Translated by: Mai Ezz El-Din
