The financial markets of the United Arab Emirates have seen prosperity and rapid growth in the national economy this year, with its market capitalization exceeding 3.6 trillion dirhams, equivalent to 406 billion dirhams, by about 13 percent. , reflects the path of prosperity, growth and prosperity of the national economy, which contributed to strengthening its position in the market. regionally and globally.
The continued achievements of the local stock markets come amid efforts to double the market value of the Abu Dhabi and Dubai financial markets, reaching Dh6 trillion in the coming years, within an integrated strategic plan developed by the Securities, Commodities and Financial Markets Authority. It aims to contribute to achieving leadership and supporting the development of the national economy in accordance with the best standards, improving the country's competitiveness in various indicators, reports and international forums.
According to Emirates News Agency “WAM” monitoring, the market capitalization of stocks listed on the local financial markets increased by about 12.66%, rising from 3.206 trillion dirhams at the end of 2022, with 2.624 trillion dirhams distributed to the Abu Dhabi market and 581.9. billion for the Dubai market reached 3.612 trillion dirhams at that time, including the current, 2.932 trillion for the Abu Dhabi market and 680.7 billion for the Dubai market.
Foreign and corporate procurement
Foreign investors and global investment companies have increased their purchases of local stocks in the current year, with wide investment opportunities and options to participate in the strong growth process of the national economy, in addition to the level of attractiveness. Listed national companies for investment projects of major global and regional companies.
According to WAM's monitoring, institutional investment achieved net purchases in local stocks over the past 12 months, worth approximately 7 billion dirhams in the January to December period, after total sales reached 302.7 billion dirhams, compared with 295.8 billion gross sales. billion dirhams.
Non-Arab foreign investors registered net investments of more than Dh5 billion in the Dubai financial market over the past 12 months, with purchases of Dh49.5 billion worth of Dubai stocks, compared to sales of around Dh44.49 billion. , which reflects the level of confidence in the capital markets. Reflects the desire of international investors to learn about the UAE economy operating in the country and through its financial markets.
In the current year, the UAE markets attracted around 8 new IPOs, after the local markets showed their flexibility in the face of global fluctuations, which contributed to increasing the depth of the markets, increasing their investment attractiveness and attracting new segment. Investors, it has established its position as one of the most important financial and business markets in the world.
“ADNOC Gas”, “Brissite AA Holding PLC”, “Al Ansari Financial Services Group”, a subsidiary of “G42” Group, ADNOC Logistics and Services PLC, “Dubai Taxi”, and Investcorp Capital Capital Services, Phoenix Group and PureHealth Group.
According to WAM's monitoring, the new initial offerings raised approximately 22.4 billion dirhams between registered demand from investors, sovereign funds and global investment portfolios, with total demand for 6 offerings reaching 1.43 trillion dirhams, reflecting strong confidence. The economic approach adopted by the country, the United Arab Emirates offers attractive opportunities and wide investment options for investors to participate in the strong growth process of the national economy, among its main companies and institutions.
Law and initiatives
During the current year, the local financial markets issued around 37 new or amended laws aimed at improving the markets, including 6 new laws and 21 amended laws. , distributed through one allocation to the Abu Dhabi Securities Market and 5 allocations to the Dubai Financial Market. Two accreditations for Dubai Gold and Commodities Exchange, one accreditation for Dubai Clearing and one accreditation for Dubai Depository Company.
Among the most important initiatives of the current year is the exemption of companies wishing to list their green or sustainability-related bonds or sukuk on one of the local markets from registration fees until the end of 2023, in line with the “Year of Sustainability”. Coordinate with the Prime Minister's Office to adopt transformation plans, regulate security measures and regulate green bonds and sukuk, issue a decision to regulate the process of registering bonds for the purpose of listing.
These efforts include implementing a plan to follow up on reservations and observations regarding the financial statements of auditors of local public joint-stock companies, organizing activities to manage the profit-sharing investment account, and organizing a national campaign to counter unlicensed funds. Activities, raising the efficiency of risk management, supervision and corporate governance processes and completing the preparation of two draft laws, the Capital Markets Commission and the Law to Regulate the Capital Markets Sector.
The large increase in the number of listed companies and the doubling of the market value of the local markets is a significant reflection of the economic developments taking place in the country, as the markets derive their strength from several objective criteria related to public indicators. The economy of the country, the level of domestic product, the per capita income and the stability of the government in the economic results it issues and others. Another thing that exists in the national economy is that it is characterized by strength, solidity and good qualities. Growth rates unmatched by many emerging markets and even some developed world markets.
In light of the significant developments taking place in local markets, the Abu Dhabi Securities Exchange has become the second largest market in the Arab region, thanks to its strategy of providing stable financial performance with diverse sources of income in line with its guiding principles. The UAE's “Ready for Fifty” agenda aims to create a vibrant economy. Sustainability and diversity contribute positively to the transition to a new global model for sustainable development, while the Dubai Financial Market now has a list of key companies in the government. And the private sector seeks to undertake public offerings and list on the market, which invites hope of achieving the market's achievements. Stronger and bigger in the coming years.
In the next phase, markets will continue to accelerate the range of financial products and services to improve their competitive advantage by focusing on leveraging digital technology to access investment opportunities, expand and further develop the investor base. Aqueous mass.
Since its establishment in 2000, the Securities and Commodities Commission has been working to improve the securities market and commodity market at the legislative, supervisory and regulatory levels, in accordance with scientific and professional foundations that follow the best international standards in the field. From day one of establishment, it has started to consolidate its leading position in licensing and regulation of financial markets and domestically, regionally and globally.
Registration of 45 new listings in the Abu Dhabi and Dubai markets, implementation of 40 initiatives and programs to improve and develop the markets are some of the notable achievements witnessed by the markets under the leadership of the Securities and Commodities Authority in the last three years. , and 36 facilities were provided to listed or unlisted companies in the country's financial markets, raising the market value of local markets by 994 billion dirhams in three years, an increase of 288%.
The Securities and Commodities Authority has made no effort during the current year to monitor day-to-day transactions in the markets through effective electronic control systems, detect any manipulation, fraud or transactions based on insider information and audit insider trading during the ban. Patrolling markets and licensed establishments in addition to periodical, periodic and unauthorized inspections, detection of manipulations and violations, and taking necessary action against violators as per laws and regulations. Wham
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