The net investments of non-Arab investors in UAE financial markets significantly jumped to Dhs3.255 billion during the first five months of 2021, statistics revealed by the Abu Dhabi and Dubai bourses show.

The growth is reflective of the steady capital inflows received by the two markets since the beginning of the year, as a directive result of the increased investor confidence in the UAE capital markets thanks to the lucrative dividend yields paid out by the listed companies, considered the highest in the Gulf and the Middle East.

Cash dividends distributed by these companies surged to over Dhs41 billion for 2020, according to the Securities and Commodities Authority.

In more detail, the Abu Dhabi Securities Exchange saw net investments by non-Arabs hitting Dhs2.945 billion from January through May: Dhs44.752 billion in purchases and Dhs41.807 billion in sales. This segment of investors accounted for 38 per cent of total trades in the capital’s bourse, which amounted to Dhs227.639 billion, from January through May.

In Dubai Financial Market, the non-Arabs’ net investments amounted to Dhs311 million during the reference period: Dhs7.302 billion in purchases and Dhs6.991 billion in sales, which accounts for around 30 per cent of the DFM’s total trades, estimated at Dhs47.8 billion during the reference period.

Separately, the UAE stock markets closed in the green on Wednesday, with Abu Dhabi’s main index touching 6,626 points, 0.19 per cent up, with Dubai Financial Market rising 0.06 per cent to 2,839 pts amid increased liquidity of Dhs1.59 billion in both bourses. In Abu Dhabi Securities Exchange, the International Holding Company (IHC) was the best performer, rallying to Dhs95.5 amid Dhs709 million in trades. First Abu Dhabi Bank continued its upward streak to Dhs17 in mid-session before closing at Dhs16.98 amid Dhs300 million of transactions.

WAM