Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Dubai Investments: All set for a change  Join our daily free Newsletter

MENAFN - Khaleej Times - 02/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Dubai investments is among a few contenders gearing up to join the emerging market index in may as its stocks have jumped over 329% since january 2013 amid surging business and real estate trends writes

With the countdown having commenced for inclusion in emerging market index next month the leading listed firms on the uae and qatar bourses are exploring possibilities to join the prestigious index to attract foreign investment in the country. consistent performers in the two gulf states are reviewing their foreign ownership caps before index compiler morgan stanley capital international (msci) raises the uae and qatar equities to emerging market status in may which is expected to attract fresh foreign money in the region.


Leading players in the uae’s shipping real estate banking finance and investment sectors which have been performing consistently and more open in foreign ownership rules are likely to be part of global emerging markets next month. dubai investments a leading investment company listed on the dubai financial market (dfm) is among few possible shortlisted names which are strong contenders to join the emerging market index due to its extraordinary consistent performance and moves to increase foreign ownership caps by 15 per cent and offering increasing investment opportunities in the wake of dubai’s successful bid to host the world expo 2020.


Buoyed by positive business confidence across sectors and a resurgent real estate industry in the uae dubai investments (di) has posted one of the biggest gains on the stock market with its shares rallying over 329.54 per cent in past 15 months. the company stocks which closed first quarter at dh3.78 on march 31 2014 compared to dh0.88 as on january 2 2013 have led the winning streak as one of the best performing scrips on dfm over the last 15 months. the impressive rally mirrored the overall bullish trends on dfm which saw real estate and financial institutions’ stocks on a sustained bull run through the year.


In fact the di stock rally has been consistent with the share price registering a 53 per cent growth in the first quarter of 2014. the rally coincides with an impressive financial year for di which saw profits surging to dh822.02 million an increase of approximately 156 per cent over dh321.37 million reported in 2012. all sectors of di’s diversified business base have reported growth with real estate portfolio performing exceptionally well.


Some of the di subsidiaries have already seen an upturn in sales as a result of construction-related demand for products such as glass aluminium extrusion and steel fabrication among others. with the company’s investments in nearly 40 companies and joint ventures across high-yielding industries the ground has been firmly laid at di for robust returns through the year – both on the bourses and beyond.


“the overall economic indicators in the uae are very positive and dubai investments’ strong growth backed by its sound fundamentals is reflected in the surge in our stock price on the dubai financial market in the last year. to achieve over 329 per cent growth in our stock price since january 2013 is amazing” khalid bin kalban managing director and chief executive officer of dubai investments told khaleej times.


Dubai investments shares which started 2014 at dh2.47 on january 2 are likely to replicate its success this year due to positive developments on economic front. it crossed dh3 level on february 10 and ended the month at dh3.58. the scrip which listed on dfm on march 26 2000 so far outperformed the benchmark index which advanced more than 32 per cent this year. stock analysts are of the view that it will continue to break key barriers in successive intervals and may double its value in first half.


Kalban who is upbeat about the outlook is confident of consistent performance of the company due to concrete growth plans to ensure sustainability in years ahead.


“we are excited about the outlook of our stock price for 2014. at di our strong focus this year is on the real estate sector backed by our impressive land banks across the uae and our portfolio of over 18 manufacturing units specialised in building materials and related sector which is set to capitalise on the resurgent real estate sector.


“moreover we have concrete plans to enter into strategic financial acquisitions as well as exits during 2014. this along with our diversified business base will augur well for di’s growth amidst the upbeat market sentiment. we hope to see continued growth and upward trend on our stock price during 2014” kalban said.



Raising foreign ownership limits


The diversified manufacturer and a leading investor in property sector is also planning to raise foreign ownership limit of its shares to 35 per cent of its total paid-up capital. at present foreign investors hold 14.25 per cent of dubai investment’s shares out of the total 20 per cent allowed bourse data shows.


The uae nationals remained the leading shareholders with 85.80 per cent stake while gcc and arab investors hold 5.85 per cent and 3.82 per cent respectively. foreigners owned remaining 4.53 per cent according to the bourse data as of march 31.


“the firm’s shareholders including sovereign fund investment corp of dubai which has an 11.54 per cent stake will vote on the proposal at a meeting on april 15” the company said in a recent statement.


The proposal follows similar moves by other dubai-listed companies such as property developers deyaar and union properties dubai islamic bank and mashreq bank.


“raising the foreign ownership cap in dubai investments to 35 per cent will be a positive step forward for us. this will strengthen our reputation as a global conglomerate and complement our diversified presence in the international markets through our subsidiaries and investments” kalban said.


“we saw an increasing appetite among foreign investors in our businesses during the recent roadshows across leading international markets for the 300 million sukuk by dubai investments park. in view of this we feel that increasing the foreign ownership cap is a step in the right direction which helps broaden our abilities to raise capital in line with our future expansion plans” he added.


About the outlook for di scrip if it is listed on the emerging market index kalban said this move would bolster the company’s reputation in international market and add more liquidity in the market.


“we see a huge opportunity for dubai investments scrip if it is listed on the emerging markets index. this would offer us enhanced exposure and international recognition among top investments portfolios and corporate investments funds from across the globe. in other words the move will boost our international reputation which will augur well for us in the long run.



Overall from a market standpoint this move will add more liquidity besides bringing in new foreign investment institutions who adopt long-term investment policies thus contributing to achieving the desired balance in the market between corporate investors and individual investors thus improving the overall quality of investments.


“we are confident that the upward trend will continue once the scrip is listed on emerging market index” kalban said.


— muzaffarrizvi?khaleejtimes.com

 


Khaleej Times




  MENA News Headlines
 May 23 2015 - Qatar Participates in Arab Chiefs of Staff MeetingQatar News Agency
(MENAFN - QNA) The second meeting for Arab chiefs of staff started Saturday at the Arab League general secretariat. HE Chief of Staff Air Vice-Marshall Ghanim bin Shaheen Al Ghanim is leading ...

 May 23 2015 - Model Karlie Kloss stuns in standout designer gownArab News
(MENAFN - Arab News) CANNES France: Model Karlie Kloss gave celebrity guests at the amfAR annual charity gala more than a run for their money in the style stakes wearing a slinky diamante-encrusted ...

 May 23 2015 - Oman's ORPIC takes out USD910m loanMENAFN
(MENAFN) Oman Oil Refineries and Petroleum Industries Co. (ORPIC) has taken out a USD910 million ten-year loan from local and regional banks, Arab News reported.The money will be used to "meet ...

 May 23 2015 - Jordan's economy grows 3.8 percent amid political crisesMENAFN
(MENAFN) Jordan's economy is robust despite spillover violence along its borders from wars in Syria and Iraq, the central bank governor said, Arab News reported.Weak oil prices that have cut the ...

 May 23 2015 - Egypt to launch USD3b LNG tender over 2016-17MENAFN
(MENAFN) Egypt is set to launch what will be a highly sought after tender in early June to buy up to USD3 billion of liquefied natural gas (LNG) over 2016 and 2017, Arab News reported.Egypt has ...

 May 23 2015 - Iraqi forces clear path to key refinery: USThe Peninsula
(MENAFN - The Peninsula) Iraqi troops fighting Islamic State group forces have cleared a ground route into the country's largest oil refinery, the US military said Friday. "Iraqi Security Forces and ...

 May 23 2015 - Priest kidnapped in Homs region of Syria: NGOThe Peninsula
(MENAFN - The Peninsula) A priest of the Syriac Catholic Church in the western Syrian city of Homs was kidnapped Thursday along with one of his colleagues, the NGO l'Oeuvre d'Orient told AFP Friday. ...

 May 23 2015 - Suicide bomber in deadly attack on Shia mosque: SaudiThe Peninsula
(MENAFN - The Peninsula) A suicide bomber set off an explosion during weekly prayers in a Shia mosque of eastern Saudi Arabia leaving many dead Friday, the interior ministry said. "It has been ...

 May 23 2015 - Iraqi forces to launch Ramadi fightback in 'coming days'The Peninsula
(MENAFN - The Peninsula) Iraqi government and allied forces will launch an offensive aimed at retaking the city of Ramadi from the Islamic State group in the coming days, a spokesman said on Friday. ...

 May 23 2015 - Iraq- 55,000 have fled IS-captured Ramadi since mid-May: UNThe Peninsula
(MENAFN - The Peninsula) The United Nations said Friday that around 55,000 people had fled Ramadi since a surge by the Islamic State group in mid-May that landed the Iraqi provincial capital in the ...

more...


 






Google

Arab Advisors_12th convergence conf

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help