Dubai-Mubasher: Invesco Middle East said that the decline in private capital coming into the UAE from emerging markets, including Russia, is an example of a rapid year-on-year reversal in sources of capital inflows.
Last year’s study showed inflows from emerging markets at 58%, dropping down to 41% this year, said Nick Tolchard, Head of Invesco Middle East.
He noted that these findings underline the diversified nature of the UAE economy, especially with capital flowing increasingly from MENA and the GCC. This shows that UAE is so stable and sustainable as a source of capital to be relying on negative events in international markets causing short-term capital flight.”
Greater capital inflows from Mena and other GCC markets have offset declines from emerging markets.
Flows from Russia are thought to have been affected by the rouble decline, thus reducing the buying power of affluent Russians in the UAE real estate and tourism sectors.
