National banks invest Dhs4.4b in local stock markets in 12 months: CBUAE
- 03 Sep 2024
National banks boosted their investments in local stock markets by Dhs4.4 billion over 12 months, according to the latest statistics from the Central Bank of the UAE (CBUAE).
According to Central Bank statistics, national banks raised their equity investments to Dhs16.1 billion at the end of May, a year-on-year (YoY) increase of 37.6 percent compared to Dhs11.7 billion in May 2023.
Foreign banks’ investments in local stock markets reached Dhs300 million at the end of May, compared to Dhs200 million in May 2023, an increase of 50 percent or Dhs100 million.
National banks accounted for 94.9 percent of the Dhs16.4 billion worth of equity investments by banks operating in the UAE at the end of May, while foreign banks accounted for 5.1 percent.
According to the statistics, traditional banks’ investments in local stock markets reached Dhs14.2 billion at the end of May, a YoY increase of 52.7 percent, or Dhs4.9 billion, compared to Dhs9.3 billion in May 2023.
The Islamic banks’ investments in local stock markets stood at Dhs2.2 billion at the end of May, a year-on-year decrease of 15.4 percent compared to Dhs2.6 billion in May 2023.
According to CBUAE statistics, the Abu Dhabi banks’ investments in local stock markets amounted to about Dhs11.4 billion, Dubai banks’ investments amounted to Dhs2.2 billion, and the share of banks in other emirates amounted to about Dhs2.8 billion at the end of May 2024.
Nasdaq Dubai lists $400 million bonds: Nasdaq Dubai has announced the listing of US$400 million Floating Rate Notes by Agricultural Bank of China (DIFC Branch). This marks the bank’s second bond listing on Nasdaq Dubai amidst deepening China-UAE economic ties.
The $400 million note, issued under the $15 billion Medium Term Note Programme, is due in 2027. Agricultural Bank of China (ABC) is one of the Big Four banks in China.
The new issuance reflects ABC’s strategic expansion into global markets and enhances Nasdaq Dubai’s fixed-income listing portfolio. The total value of outstanding fixed-income listings on Nasdaq Dubai stands at $135 billion.
The bell-ringing ceremony took place in the presence of Ou Boqian, Consul-General of the People’s Republic of China in Dubai, and Hamed Ali, Chief Executive of Nasdaq Dubai and DFM.
Ou Boqian highly praised ABC’s Dubai institutions for their achievements in advancing the Belt and Road Initiative (BRI). In celebrating the 40th anniversary of the establishment of diplomatic relations between China and the UAE, Ou Boqian expressed expectations that Chinese financial institutions in Dubai, including ABC, will actively implement the spirit of the Joint Statement signed by the two governments this May, injecting financial momentum into BRI-related investments and trade projects.
Ou Boqian also emphasised the importance of enhancing China-UAE cooperation across various fields and fostering deeper people-to-people bonds.
Hou Guifeng, SEO of ABC DIFC Branch, noted that in recent years, the branch has been strategically positioned in the UAE to serve the wider Middle East and North Africa region. Focused on projects with Chinese elements, the branch has actively and steadily promoted the implementation of the Belt and Road Initiative, deeply participating in the development of solar power generation, seawater desalination, aviation and shipping, and clean energy projects in the region. The successful issuance of Belt and Road-themed bonds will further add financial impetus and momentum to the promotion of financial and business cooperation in this region.
Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “We are pleased to welcome the $400 million listing from ABC on Nasdaq Dubai. As the premier global hub for international bond listings, the exchange is committed to providing an innovative and robust platform for global issuers to access regional and international investors. We look forward to supporting ABC in their continued growth and success in the international capital markets.”
ADX welcomes listing of $1 billion Masdar green bonds: Abu Dhabi Securities Exchange (ADX) has welcomed the listing of US$1 billion in green bonds issued by Abu Dhabi Future Energy Company (Masdar) in two tranches.
According to ADX data, the first tranche of the bonds is valued at $500 million, with a fixed interest rate of 4.875 percent, maturing on 25th July, 2029. The second tranche is also valued at $500 million, with a fixed interest rate of 5.25 percent, maturing on 25th July, 2034.
The bond issuance witnessed significant demand from investors both regionally and globally, with the peak value of subscription orders reaching $4.6 billion, representing an oversubscription by 4.6 times.
Meanwhile, oatum Logistics, an AD Ports Group company and a leading logistics provider, has announced the launch of its new rail logistics solution for the Middle East region.
The new service, which complements Noatum Logistics’ integrated regional portfolio of freight forwarding products leveraging land, sea, and air transport, was inaugurated with the launch of its first rail shuttle service between Khalifa Port and Fujairah Terminals.
The shuttle service, which utilises the UAE’s national railway developed and operated by Etihad Rail, aims to add significant capacity to the regional logistics network and provide options for customers transporting large volumes of overland freight.