Right time to invest? UAE equities attractive on low valuations, positive indicators | ZAWYA MENA Edition:
Investors waiting for the right moment to invest in the UAE markets need not wait any longer, as several key catalysts such as the increase in foreign ownership limit, government spending, and consolidation in banks have created a landscape of positive economic indicators that is favourable to investors, experts said.
Speaking at a forum on Sunday, Ali Al Adou, head of asset management at Daman Investments, said that while UAE markets have underperformed, key catalysts such as increasing liquidity and lower interest rates will help the market rebound. The macroeconomic slowdown, he said, was due to several reasons, including the escalation in geopolitical tensions; Saudi Arabia and Kuwait's MSCI and FTSE inclusions; and a lack of diversification and liquidity.
In addition, real GDP growth has trended downwards due to a slowdown in key sectors during the 2015-18 period. Government spending as a percentage of the GDP has decreased during this period.
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