DFM foreign investment tops $680mn

Foreign investor buying volume on Dubai Financial Market (DFM) tripled to over $680 million in the first six months of this year, according to the CEO of UAE-based fund manager Daman Investments.Shehab Gargash said foreign investors accounted for around 30% of total DFM trading liquidity during the first half of 2007, and predicted this would continue to rise with the market’s drive to attract further investment from outside the UAE.“The UAE markets are currently witnessing a key turning point after a healthy recovery from their lows as more and more foreign and institutional investors are looking into the region as a key new value opportunity,” Gargash said in a statement on Tuesday.

“The drive by the markets to attract foreign investment through a series of steps is a positive sign towards the overall development of the market. It will be this category of investor money that will make the difference in the coming investment cycle,” he added.The rise in foreign investor buying volume is a sign that DFM’s recent drive to attract more investment from abroad is already paying dividend.Both DFM and the Abu Dhabi Securities Market (ADSM) have been on marketing roadshows to the US and UK in the last few months to encourage foreign investment.Gargash said the performance of both markets looked set to continue thanks to a stead flow of initial public offerings (IPOs) and upcoming announcements relating to several deals.“Several factors bode well for the markets in the coming period, including the eventual disclosure of details related to several deals in the making, such as the National Bank of Dubai/Emirates Bank International merger and the Dubai Holdings/Emaar transaction,” he said. “The IPO pipeline also remains healthy and the coming weeks will see the debut of several new scripts including Air Arabia and Deyaar,” he added. Source