Dh7 billion net institutional investment in UAE stocks during 2023

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 Dh7 billion in local stocks from January to December 2023. This figure reflects a total purchase of Dh302.7 billion compared to total sales of approximately Dh295.8 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 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.

In the Abu Dhabi Securities Exchange (ADX), institutional investors achieved a net investment exceeding Dh6.1 billion year-to-date. This robust appetite was fuelled by cumulative purchases of Dh253.9 billion, marginally exceeding sales of Dh247.8 billion.