UAE Central Bank’s gold reserves reach Dhs11.56 billion in April

The value of gold reserves of the Central Bank of the UAE (CBUAE) in April 2021 rose to Dhs11.56 billion, a growth of 6.8 per cent or Dhs743 million, compared to Dhs10.817 billion in March 2021. The bank in its latest figures released on Thursday showed steady growth in gold reserves for the second consecutive month, after being valued at Dhs10.481 billion in February 2021.

According to recent statistics, the value of the Bank’s gold bullion balance reached its highest in December 2020, rising to Dhs12.862 billion. The Bank’s reserves of gold only make up a small percentage of its total balance of foreign currencies, which totalled Dhs393.78 billion in April 2021. The Central Bank sold all its gold before 2015, but it began to re-constitute its gold reserves during the same year, as well as its basket of foreign currencies, most notably US dollars and Euros.

The Central Bank of the UAE announced on Wednesday that the Money Supply aggregate M1 increased 0.3 per cent, from Dhs642.3 billion at the end of March 2021 to Dhs644.4 billion at the end of April 2021. The Money Supply aggregate M2 decreased to Dhs1462.5 billion at the end of April 2021, meanwhile, the Money Supply aggregate M3 reduced to Dhs1764.8 billion at the end of April 2021. The Monetary Base contracted by 1.4 per cent falling from Dhs437.1 billion at the end of March 2021 to Dhs430.8 billion at the end of April 2021. The main driving force behind this fall in the Monetary Base was 20.0 per cent and 3.7 per cent decrease in Reserve Requirements and Certificates of Deposit & Monetary Bills, respectively.

The foreign assets held by the Central Bank of the UAE increased to Dhs392.4 billion by the end of the first quarter this year, a growth of 1.1%, a CBUAE report shows. The apex bank ascribed the growth mainly to Dhs85.9 billion quarterly increases in foreign securities and other foreign assets by 25.7 per cent (Dhs9.2 billion), overshadowing a reduction in current account balances and deposits with banks abroad by 26.1% (Dhs90.7 billion). From March 2020 to March 2021, Central Bank Foreign Assets increased by 0.4%, YoY, added the report. With regards to the country’s twin bourses, the report said Abu Dhabi’s quarterly average Financial Market Index rose by 17% during the first quarter of 2021.

The quarterly average Market Capitalisation of companies listed at the Abu Dhabi Securities Exchange (ADX) surged by Dhs101 billion reaching Dhs826.7 billion at the end of the first quarter of 2021. The Quarterly Traded Value also rose by 74.7% during the first quarter of 2021 reaching Dhs50.3 billion. However, on an annual basis, the Abu Dhabi Financial Market Index fell by 3.3%.

ADX listed $1b bonds: Abu Dhabi Securities Exchange (ADX) announced on Thursday that it has listed $1 billion of bonds issued by Abu Dhabi Ports.

The 10-year bonds, with a primary listing on the London Stock Exchange, are rated A+ (stable) by S&P and A+ (stable) by Fitch, and were 4.5 times over-subscribed. The Notes mature on 6th May 2031 and carry a coupon of 2.5 per cent per annum.

Bond market development is a key part of the Abu Dhabi exchange’s “ADX One” strategy, which aims to increase liquidity and broaden the market’s offering of products and services. In the last year, the ADX has attracted exchange-traded funds (ETFs) and listings on the Second Market, and the launch of a derivatives market is scheduled for late 2021.

The listing of Abu Dhabi Ports bonds follows the listing on ADX in April of 1.1 billion euros of bonds issued by Mamoura Diversified Global Holding, a debt issuing entity of Mubadala Investment Company.

Saeed Hamad Obaid Al Dhaheri, Chief Executive Officer of ADX, commented, “We welcome the listing of Abu Dhabi Ports’ bonds on the ADX as the exchange continues to deepen the marketplace, providing investors with high-quality access to regional investment opportunities. This year, we have seen a significant increase in liquidity and an acceleration in the growth in market capitalisation, which has made ADX the second-largest market in the Mena region. As we invest further in technology and broaden our products and services, ADX is well-positioned to build a strong pipeline of listings.” Capt. Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports, said, “Our recent bond issuance attracted strong global interest, achieving the lowest coupon by an Abu Dhabi government-owned entity for a 10-year tenor. This is a strong vote of confidence in our strategy and in the UAE economy and leadership. We have successfully consolidated and integrated our ports, industrial, logistics, maritime and digital entities while increasing volumes and revenues. Today, we are a regional pioneer supporting the growth of Abu Dhabi and the UAE, and driving innovation and development across the global maritime and logistics industries.” Trading on ADX has increased notably this year, as the exchange’s market capitalisation increased 27 per cent during the first quarter to a record Dhs940 billion and the benchmark ADX index advanced 30 per cent.

WAM