Chief Executive of Abu Dhabi Securities Exchange (ADX), Rashed Al Blooshi, called on Chinese investors to seize the investment opportunities available in ADX, which is considered one of the best stock markets in the region in terms of return on investment. Al Blooshi also highlighted the solid economic relations with China, which the UAE considers its second largest trading partner.
ADX Chief Executive comments came during his participation in roundtable discussions for Fujian investment Forum and Chongqing investment Forum which took place last week. The Forums were attended by Chinese government representatives, members of the business community in Fujian and Chongqing as well as senior officials from Industrial and Commercial Bank of China (ICBC)- the largest bank in the world by total assets and by market capitalization-to discuss business opportunities and areas of cooperation with the Emirate of Abu Dhabi in general, and ADX in particular.
Al Blooshi stated that 62 out of 66 ADX listed companies are open to foreign investors, which reflect the high level of foreign investments flowing to the Exchange particularly after MSCI upgraded ADX emerging market status.
“Abu Dhabi, with its well-regulated legal environment and advanced infrastructure links is supported by a significant economic performance for the Emirate as well as the UAE. According to AD DED, Abu Dhabi has strengthened the economic partnership with China as the trade co-operation in the non-oil sector between China and Abu Dhabi reached AED6.6 billion in the first half of 2016, compared to AED4.2 billion in the first half of the year 2015, at a growth rate of 57 per cent.” He added
“Trade volume between both countries reached USD 54.8 billion in 2015, while the non-oil foreign trade, including free trade zones, has reached USD 47.5 billion. Number of Chinese companies operating in the country stood at 4000 companies and 278 trade agencies,” said ADX Chief Executive.
He also said that the business between China and the UAE is expected to get a boost as the UAE decided to grant Chinese nationals visa on arrival.
According to Abu Dhabi Statistics Centre (SCAD), Abu Dhabi’s economy saw a 2.3% growth year-on-year in the second quarter of 2016, as the emirate’s GDP reached AED 198.833 billion in Q2 2016, compared to AED 194.338 billion on Q2 2015. Meanwhile, the GDP amounted to AED 194.358 billion in Q1 2016. Oil value added at constant 2007 prices amounted to AED 96.466 billion in Q2-16, representing 48.5% of the emirate’s GDP.
Al Blooshi went on to highlight how Abu Dhabi government has launched huge development projects in order to sustain the level of growth and how the Emirate has made big strides in diversifying the economy which led to a surge in non-oil sectors contribution in the actual GDP to reach %51.5 by the end of June 2016.
As for Chinese investment in ADX, Al Blooshi stated that by end of Q3 2016, ADX had 258 registered Chinese investors among them were 16 institutions. The total trading value of Chinese investors represented around 10% of the total trading value of Asian investors in 2015, whereas in 2014 the percentage was around 7.2%. As for net investment, Chinese investors net investment represented around 9% of the net investment of Asian investors.
Whereas the market value of shares owned by Chinese investors in ADX reached 105 million Dirhams at end of Q3 2016, an increase of %9.3 compared to the end of 2015.