The Dubai Financial Market (DFM) International Investor Roadshow in New York has provided a strong indication of the growing appetite from international investors towards the securities market in Dubai, as fund managers from key institutions in the US flocked to the event to stay abreast of most recent developments and growth outlook in 12 DFM and Nasdaq Dubai-listed companies.
Organized with co-sponsorship from the Bank of America Merrill Lynch (BofAML), the event was successfully concluded on Tuesday, 20 October 2015. 180 One-on-one meetings took place between CEOs, CFOs and Investor Relations managers of Dubai-listed companies on one hand and senior representatives of major international funds, with US$ One trillion of assets under management on the other hand. The listed companies had the opportunity to present their success stories and most recent developments. The participant’s list included; Damac Properties, DP World, Drake and Scull, Dubai Investment Company, Dubai Islamic Bank, Dubai Parks & Resorts, Emaar Properties, Emirates NBD, Emirates REIT, Union Properties, Tabreed and DFM Company.
His Excellency Essa Kazim, Chairman of DFM said: “As one of the most hospitable and attractive exchanges for foreign investments in the region due to its world class infrastructure, diversified opportunities and the high level of securities accessibility to foreign investments, international investors widely see DFM as a proxy for their participation in the growth of one of the most dynamic and rapidly growing economies not only in the UAE but beyond. Subsequently, our listed companies have made considerable percentages of its shares accessible for foreign investors and some of them had to further increase the cap to accommodate the high level of foreign investment demand, particularly given the UAE has been classified as an ‘Emerging Market’ by leading index companies such as Morgan Stanley Capital International (MSCI) and (S & P Dow Jones). Foreign investors constitute as much as 40% of DFM’s enormous and well-diversified investor base and their participation on the market is progressing. This year for instance, foreign investors’ share of total trade value has increased to 48% compared to 43% during the same period of 2014.”
“Currently, foreign investors own as much as 17% of the Market Cap of DFM-listed companies, equivalent to AED 57.6 billion and the quantity of shares owned by them increased to 21% in 2015 year to date, from 18.4% last year. The total value of DFM-listed securities accessible for foreign investors amounted at AED 128 billion, equivalent to 39% of the Market Cap. Accordingly, and despite the fact that foreign investors are already active players in our market, there is still a good room for further participating from their side.” His Excellency Essa Kazim concluded.
Arshad Ghafur, President Middle East & Africa, Bank of America Merrill Lynch, said: “The strong level of engagement with international investors against a global backdrop of market volatility underscores the DFM’s unique position in the global equity markets. We are proud to partner with the DFM in directing the attention of the global investor community to DFM listed companies and reaffirm our long-standing commitment to the Government of Dubai.”
Commenting on the outcome of the roadshow, Fahima Al Bastaki, Senior Vice President, Head of Business Development Division, DFM, said: “Our roadshow in New York has achieved tremendous turn out as 180 One-on-One meetings took place with representatives of 46 leading funds. This provides a strong indication of its success and international investors’ enthusiasm to further participate in our market as well as listed companies’ inclination to interact with those investors, particularly subsequent to the UAE’s classification as an ‘Emerging Market’. The DFM roadshows gain momentum yearly as we constantly place emphasis on presenting new companies in addition to the regular participants in line with investor demand and in coordination with the co-host. We strongly encourage issuers to actively connect with investors and analysts and over the past years, DFM has been vigorously collaborating with them to promote best practices of Investor Relations. In fact, listed companies dedicated lots of efforts and resources to embrace such practices, which is noticeably recognized by investors.”
Senior executives of Dubai-listed companies commended the result of the event stressing its significance at the top of their list of investor events annually due to the high level of attendees from institutions in the USA.
Emaar Properties: A strong platform to highlight Dubai’s strength as a destination for foreign investment
Amit Jain, Group Chief Operating Officer, Emaar Properties, said: “The DFM International Investor Roadshow in New York was a strong platform to highlight Dubai’s strength as a destination for foreign investment, and to underline the financial fundamentals of Emaar in delivering sustained value for our stakeholders. DFM roadshows have traditionally served us in interacting closely with investors, which have benefited us significantly, particularly during the recent Emaar Malls IPO. The opportunity to meet high profile investors and representatives of major global funds will continue to add value for Emaar and other DFM companies further defining Dubai as a global hub for business and finance.”
Dubai Investments: an excellent opportunity to draw attention to our capabilities and expertise across diverse sectors
Abdulaziz bin Yagub Al Serkal, General Manager, Dubai Investments PJSC, said: “The DFM international investor roadshow in New York was a great platform to network with foreign investors and offered an excellent opportunity to draw attention to our capabilities and expertise across diverse sectors. The roadshow was an effective forum to provide insights about Dubai Investments’ strategy and future growth plans and highlight the value creation that we have achieved for our shareholders. The event also gave us valuable feedback about how we are perceived by the international investor community.” He added: “The roadshow reinforced the strong growth potential offered by the DFM-listed companies and the attractive opportunities across various sectors for global institutional investors.”
DP World: illustrating the great strides the UAE, Dubai and DP World have made
Mohammed Sharaf, Group Chief Executive Officer, DP World: “Being a global business, we place great value on consistent engagement with the international financial community, and we are proud to partner with DFM on this roadshow to illustrate the great strides the UAE, Dubai and DP World have made as we continue to develop the economic foundations for future success, creating a legacy for those that follow.”
Emirates NBD: valuable event for both issuers and investors
Shayne Nelson, Group CEO, Emirates NBD said: “We are very pleased to be once again associated with this DFM initiative. This roadshow provides an effective forum for Emirates NBD to meet with international investors to provide an update on company performance and discuss the outlook for the UAE banking sector. The DFM International Investor Roadshows in New York and London have become established and well attended events, underlining the value that they generate for both issuers and investors.”