By: Bedour Al Raie
United Arab Emirates – Mubasher: Two decisions have effectively led
UAE markets this year, namely the OPEC’s decision not to change oil
production capacity added to the MSCI Emerging Market upgrade. Morgan
Stanley’s MSCI had announced in mid-May the list of national companies
that would be listed as part of its indices.
Capital market analyst Tarek Essawy told Mubasher that the UAE market upgrade was the highlight of the year, boosting the markets in 2014.
It is expected that 2015 will be similar to 2014 in terms of several strong events owing to the economic promotions witnessed in the UAE over the past few years, particularly after being awarded the Expo 2020 in late 2013, prompting an improvement in the real estate and hotels sector, which indicates additional economic growth in the coming period, Essawy commented.
The oil price dive and the OPEC maintaining its decision not to cut production negatively affected UAE markets at the end of 2014, Investment Manager at Pioneers – UAE Yasser Mossad told Mubasher exclusively, adding that he expects the plunge in oil prices to continue in 2015 and to be reflected on the economic situation of the Gulf region as a whole.
In December, Moody’s said that the UAE’s economy is capable of handling the oil price decline owing to the country’s diverse economy added to the massive financial precautions taken as well as the many sovereign wealth funds owned by the UAE.
It is worth noting that the value of sovereign wealth funds owned by the UAE exceed $1.2 trillion.
It is expected that the file on merging the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) will be reopened in 2015 after the merger was postponed indefinitely in 2014, Essawy noted.
DFM receives 4 new firms
UAE markets, particularly the DFM welcomed four new companies that were listed on the exchange, paving the way for a return of initial public offerings (IPOs), the last of which was seen in 2008. More IPOs are expected in the markets in 2015.
Four IPOs were launched on the DFM between September and December 2014, namely: Marka, Emaar Malls, Amanat Holdings and Dubai Parks, respectively, at a total value of AED 10 billion.
The UAE market is set to see more IPOs in 2015 including DAMAC Properties, Emaar Hospitality, and Daman Investments, a matter which analysts believe will add value to the UAE’s gross domestic product (GDP) and improvement of the country’s economic position.
Second market launch
In September 2014, the UAE witnessed the launch of the Second Market for private companies, launched by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Two companies were listed on the ADX’s second market, namely Manazel Real Estate and the National Investor.
“The listing comes in accordance with ADX strategic objectives of diversification of financial products and introducing new financial tool for trading,” the ADX had said in a statement.
Emaar’s historical dividends
On November 24, 2014, Emaar Properties’ general meeting approved a cash dividend of AED 9 billion to shareholders, at AED 1.257 per share, marking the largest dividend distribution in the UAE.
Aabar-Ismaik debacle
Arabtec Holding’s share was affected by the various news and speculations that circulated the company starting with the $40-million project in Egypt to build one million residential units, to Hasan Ismaik’s resignation and selling part of his stake in the firm. As at his resignation, Ismaik held a 28.8% stake in the construction company.
Moreover, amongst the news that made headlines during the year was that related to Aabar Investments’ stake in the Dubai-based construction giant as Aabar raised its stake by nearly 15 million shares on December 8, hiking its stake to 35.27% and becoming the largest shareholder in the Company, with Arabtec’s former CEO Hasan Ismaik’s stake falling to 11.81%.
Nakheel pays AED220m to Sukuk creditors
Dubai-based Nakheel announced earlier in December that it has repaid AED 220 million in profits to commercial Sukuk holders.
Translated by: Nada Adel Sobhi
Photo Credit: Arabianeye-Reuters
Capital market analyst Tarek Essawy told Mubasher that the UAE market upgrade was the highlight of the year, boosting the markets in 2014.
It is expected that 2015 will be similar to 2014 in terms of several strong events owing to the economic promotions witnessed in the UAE over the past few years, particularly after being awarded the Expo 2020 in late 2013, prompting an improvement in the real estate and hotels sector, which indicates additional economic growth in the coming period, Essawy commented.
The oil price dive and the OPEC maintaining its decision not to cut production negatively affected UAE markets at the end of 2014, Investment Manager at Pioneers – UAE Yasser Mossad told Mubasher exclusively, adding that he expects the plunge in oil prices to continue in 2015 and to be reflected on the economic situation of the Gulf region as a whole.
In December, Moody’s said that the UAE’s economy is capable of handling the oil price decline owing to the country’s diverse economy added to the massive financial precautions taken as well as the many sovereign wealth funds owned by the UAE.
It is worth noting that the value of sovereign wealth funds owned by the UAE exceed $1.2 trillion.
It is expected that the file on merging the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) will be reopened in 2015 after the merger was postponed indefinitely in 2014, Essawy noted.
DFM receives 4 new firms
UAE markets, particularly the DFM welcomed four new companies that were listed on the exchange, paving the way for a return of initial public offerings (IPOs), the last of which was seen in 2008. More IPOs are expected in the markets in 2015.
Four IPOs were launched on the DFM between September and December 2014, namely: Marka, Emaar Malls, Amanat Holdings and Dubai Parks, respectively, at a total value of AED 10 billion.
The UAE market is set to see more IPOs in 2015 including DAMAC Properties, Emaar Hospitality, and Daman Investments, a matter which analysts believe will add value to the UAE’s gross domestic product (GDP) and improvement of the country’s economic position.
Second market launch
In September 2014, the UAE witnessed the launch of the Second Market for private companies, launched by H.H. Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Two companies were listed on the ADX’s second market, namely Manazel Real Estate and the National Investor.
“The listing comes in accordance with ADX strategic objectives of diversification of financial products and introducing new financial tool for trading,” the ADX had said in a statement.
Emaar’s historical dividends
On November 24, 2014, Emaar Properties’ general meeting approved a cash dividend of AED 9 billion to shareholders, at AED 1.257 per share, marking the largest dividend distribution in the UAE.
Aabar-Ismaik debacle
Arabtec Holding’s share was affected by the various news and speculations that circulated the company starting with the $40-million project in Egypt to build one million residential units, to Hasan Ismaik’s resignation and selling part of his stake in the firm. As at his resignation, Ismaik held a 28.8% stake in the construction company.
Moreover, amongst the news that made headlines during the year was that related to Aabar Investments’ stake in the Dubai-based construction giant as Aabar raised its stake by nearly 15 million shares on December 8, hiking its stake to 35.27% and becoming the largest shareholder in the Company, with Arabtec’s former CEO Hasan Ismaik’s stake falling to 11.81%.
Nakheel pays AED220m to Sukuk creditors
Dubai-based Nakheel announced earlier in December that it has repaid AED 220 million in profits to commercial Sukuk holders.
Translated by: Nada Adel Sobhi
Photo Credit: Arabianeye-Reuters
