Foreign investment in the UAE on the rise
According to the Abu Dhabi and Dubai stock exchanges, foreign investments have increased significantly so far this year in the United Arab Emirates. According to the financial institutions of the two Emirati megacities, up to the month of May, 3,255 million dirhams have been invested. This increase in foreign capital is due to growing investor confidence in the country's markets. Over the past year, in 2020, foreign investments grew to Dh41 billion, according to the Securities and Commodities Authority.
From January to May 2021, the Abu Dhabi Securities Exchange reached Dh44.752 billion in purchases and Dh41.807 billion in sales. On the other hand, in Dubai, purchases amounted to Dh7.302 billion in purchases and Dh6.991 billion in sales.
The Emirati economy is doing well despite the crisis caused by the coronavirus pandemic that has affected all countries. Recently, the Abu Dhabi Stock Exchange announced that it has listed $1 billion in 10-year bonds issued by Abu Dhabi Ports. One of the largest and most important companies in the region, Abu Dhabi Ports manages ports, industrial zones and logistics. These bonds have also attracted the attention of foreign investors. "Our recent bond issue attracted strong global interest, achieving the lowest coupon from an Abu Dhabi government-owned entity for a 10-year term," said Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports. "We are now a regional pioneer supporting the growth of Abu Dhabi and the UAE, and driving innovation and development across the global maritime and logistics industry," Al Shamisi added.
CEO of ADX, an Abu Dhabi Stock Exchange, Saeed Hamad Obaid Al Dhaheri, praised the Emirati company's bonds. "We welcome the listing of Abu Dhabi Ports bonds on ADX, as the bourse continues to deepen in the market." Al Dhaheri alluded to investors, to whom these bonds "provide high quality access to regional investment opportunities". He also recalled that the stock exchange is the second largest market in the MENA region thanks to increased investment in technology and the expansion of products and services.
The UAE's economic expansion has attracted other countries in the region, such as Israel. In September 2020, Abu Dhabi and Tel Aviv established formal relations through the Abraham Accords, promoted by former US President Donald Trump. Israel recently announced that it will open a financial office in Abu Dhabi to boost investment in the Gulf. The Israeli economy ministry also reported on a treaty with the UAE to encourage trade development between the two countries. "The opening of the economic office will give a significant boost to the various initiatives already underway," said Amir Peretz, Israel's finance minister.
The UAE, which is one of the world's largest oil producers, is also developing plans to engage in the fight against climate change. Abu Dhabi has proposed organising a landmark UN conference on global warming. "The climate challenge is daunting, but it is also accompanied by a huge opportunity to boost economic growth and job creation," said Abdullah bin Zayed Al Nahyan, the UAE's minister of foreign affairs and international cooperation. The Gulf state has allocated more than $1 billion in grants and low-interest loans for renewable energy innovation to 70 countries. Abu Dhabi is thus emerging not only as an economic powerhouse in the region, but also as a climate leader in an area particularly affected by climate change. According to experts, temperatures are expected to rise by more than twice the global average by 2030.