Abu Dhabi is by some estimates the wealthiest city on Earth, and its 300,000 citizens sit atop almost ten per cent of global oil reserves. That makes the emirate a major source of outward investment, not just through its sovereign funds and government develoment companies, but also through the wealth of its private citizens.
While property in London, stocks in America and the safe funds offered by overseas wealth managers have long been a favourite, two new products launched by local banks in the last week show domestic demand is growing for exposure to emerging markets.
Abu Dhabi Islamic Bank launched a BRIC currencies note, which lets investors buy into the four BRIC currencies, which appreciated by 16 per cent in 2010. The notes, which include a guarantee that restricts any possible loss to 3 per cent, will return a fixed rate of 8 per cent if the currencies appreciate by anywhere from 0-8 per cent against the US dollar, and will return at the same rate of growth as the currencies if they appreciate by more than 8 per cent, up to limit of 22 per cent at maturity.
No comments:
Post a Comment