Institutional investors were hungry for Dubai, Abu Dhabi Stocks in 2023

Appetite for local stocks on the Dubai and Abu Dhabi stock markets has proven to be strong among institutional investors with net purchases nearing Dhs7bn ($1.9bn) from January to December 2023.

This is according to statement released on news agency WAM, which goes on further to say that there was a total purchase of Dhs302.7bn compared to total sales of approximately Dhs295.8bn in the two bourses.

“Institutional investors dominated the UAE equity market in 2023, capturing nearly 78 per cent 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,” read the statement on WAM.

“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,” notes the statement.

Delving into the figures

Looking closer at the numbers, the statement goes further to note that on the Abu Dhabi Securities Exchange (ADX), institutional investors achieved a net investment exceeding Dhs6.1bn year-to-date, fuelled by cumulative purchases of Dhs253.9bn exceeding sales of Dhs247.8bn.

In the Dubai Financial Market, institutional investment achieved a net purchase value of AED808.1 million.