Chinese investors urged to invest on ADX for investment returns

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Chinese investors have been urged to seize the investment opportunities available on the Abu Dhabi Securities Exchange (ADX) as it is one of the best stock markets in the region regarding returns on investment.

Rashed Al Blooshi, Chief Executive of the ADX, made this assertion while participating in roundtable discussions for the Fujian Investment Forum and Chongqing Investment Forum.

Sixty-two out of 66 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, he stated.

Economic relations

Al Blooshi also highlighted the solid economic ties with China, which the UAE considers its second largest trading partner.

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 the Abu Dhabi Department of Economic Development (DED), Abu Dhabi has strengthened the economic partnership with China. The trade co-operation in the non-oil sector between China and Abu Dhabi reached Dh6.6 billion in the first half of 2016, compared to Dh4.2 billion in the first half of the year 2015, at a growth rate of 57%,” he added.

“Trade volume between both countries reached US$ 54.8 billion in 2015, while the non-oil foreign trade, including free trade zones, has reached $47.5 billion. The number of Chinese companies operating in the country stood at 4,000 while there were 278 trade agencies,” said the ADX Chief Executive.

Business ties

Business relations between UAE and China are expected to get a boost as the latter decided to grant Chinese nationals visa on arrival, he also said.

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 Dh198.8 billion in Q2 2016, compared to Dh194.3 billion in Q2 2015. Meanwhile, the GDP amounted to Dh194.3 billion in Q1 2016. Oil value added at constant 2007 prices amounted to Dh96.5 billion in Q2 of 2016, representing 48.5% of the emirate’s GDP.

Al Blooshi went on to highlight how the Abu Dhabi government has launched massive development projects to sustain the level of growth and how the emirate has made significant 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.

Chinese investment

As for Chinese investment in the ADX, Al Blooshi stated that by the end of Q3 2016, ADX had 258 registered Chinese investors among whom 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%.

Chinese investors represented around 9% of the net investment of Asian investors. The market value of shares owned by Chinese investors at the ADX reached Dh105 million at the end of Q3 2016, an increase of 9.3% compared to the end of 2015.

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