Financial analysts have identified nine new factors that motivate investors to open trading accounts and pump new money into the Dubai Financial Market during the remaining two months of the current year (November and December).
They explained to “Emirates Today” that the most prominent of these factors are: the attractive investment returns provided by the Dubai Financial Market compared to the region’s markets, in addition to the initial public offerings and successful new listings, and the lucrative annual cash distributions that the listed companies disclose at the end of each year.
They indicated that among these factors are also the expectations that the leading listed companies will disclose strong business results for the third quarter of this year, and the great activity witnessed by the non-oil sectors, especially the real estate and tourism sectors, in addition to Dubai’s recent announcement of the largest budget in its history, and the trend for more… Lowering interest rates by the US Federal Reserve, in addition to the increase in population, and finally the quick and easy procedures for opening new accounts.
Brokerage companies in the Dubai Financial Market added about 84.82 thousand new accounts for investors during the first 10 months of this year, a growth of 85%, compared to 41.95 thousand new accounts during the same period in 2023.
Promising opportunities
A member of the National Advisory Council at the Chartered Institute for Securities and Investment, Wadah Al-Taha, said, “Providing promising investment opportunities for investors, especially foreigners, prompts them to open new accounts in the Dubai Financial Market, especially after strengthening its position as the most prominent high-level financial market in terms of gains and rate of increase in the Gulf since the beginning of the year.” Until the end of last October.
He pointed out that the Dubai Financial Market achieved the highest annual gains in the region, in addition to the quick and easy procedures for opening new accounts, which increased the number of investors.
It is noteworthy that the Dubai Financial Market recorded the best performance in the Gulf financial markets during the first 10 months of this year, as it jumped by more than 13%, achieving market gains of about 71.82 billion dirhams, followed by the Muscat Securities Market by 3.69%, Bahrain by 2.93%, and Kuwait. 2.6%, and Saudi Arabia 0.12%, compared to a decline in the Qatar Stock Exchange by 2.83%.
Remarkable turnout
For his part, the economics and investment advisor, Amid Kanaan, said that “a follower of the performance of the Dubai Financial Market confirms the remarkable demand from investors to open new accounts,” explaining that one of the most prominent factors in increasing the number of investors in the Dubai Financial Market is the initial public offerings and successful new listings that I supervised. The Dubai government, in addition to the cash dividends disclosed by listed companies compared to the region’s markets and also compared to interest rates, which are still high despite the trend to reduce them recently.
He explained that among these factors is the rise in population and then the increase in the categories of investors in the emirate, indicating that among those factors are also the attractive returns provided by stocks listed on the Dubai Financial Market, estimated at between 6% and 7%, in addition to the strong economic indicators of the Emirate of Dubai and its recently announced budget, which is The highest in its history, in addition to the increasing pace of growth in the non-oil sectors, especially real estate and tourism.
He stressed that the continued performance of the Dubai Financial Market at a steady and attractive pace for analysts, foreign and institutional investors, and its maintenance of a balanced and good performance, increases the desire of global investment funds to increase their funds in listed stocks.
Influx of investors
For his part, the chief market analyst at Century Financial, Aaron Leslie John, said: “The boom witnessed by the Dubai Financial Market in the flow of investors confirms the attractiveness of the Emirate of Dubai for international investments in light of its maintaining its global leadership in foreign direct investment projects for three years.” “Consequently.”
He pointed out that this growth is supported by the economic foundations of the country and Dubai, whose financial market has witnessed remarkable momentum in initial public offerings in recent years, which has led to increased liquidity in the market and attracted great interest from investors.
It is noteworthy that “Parkin” company was listed on the Dubai Financial Market, as the first listing in the market this year, and the offering received exceptional interest from international and regional investment institutions, and from individual investors in the country, as the total subscription requests for “Parkin” shares exceeded about 259 billion dirhams. With the value of subscription applications exceeding approximately 165 times.
Powerful results
In turn, the financial advisor, Mahmoud Atta, said, “The listed companies’ disclosure of strong business results expected for the third quarter of this year will contribute to increasing investor confidence and their flow to open new accounts in the Dubai Financial Market and in the local financial markets in general.”
He stressed that if the Federal Reserve lowers interest rates, it will reduce borrowing costs, enhance the sentiment of the local financial markets, and increase investors in them.
He pointed out that the successive implementation of large transactions in the Abu Dhabi and Dubai markets confirms the desire of investors to start investing in major listed companies. This month of November is likely to witness exceptional activity, coinciding with the approaching US presidential elections and the Federal Open Market Committee meeting.
• Providing promising investment opportunities for investors, especially foreigners, that encourages them to open new accounts in the Dubai Financial Market.
• 85% growth in new accounts in the market within 10 months.
Follow our latest local and sports news and the latest political and economic developments via Google news