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Banking industry

UAE Stock Market Reaches Record Levels

Strategic Insights

— 2 min read

The UAE's unofficial stock market, tracked by the National Bank of Abu Dhabi 27-share index, has reached record levels since 1988, with a 11.6% increase in 1995. The index stood at 2136.4 points, its highest level since the market began. The surge in profits made by companies traded on the stock market has led to a significant increase in market capitalization, which rose approximately 24% to 45.6 billion dirhams ($12.42 billion) from 36.7 billion dirhams ($10 billion) at the end of 1994.

Key Takeaways:

  • The National Bank of Abu Dhabi 27-share index reached a record high of 2136.4 points in 1995, with a 11.6% increase.
  • Profits made by companies traded on the stock market stood at around 3.28 billion dirhams ($894 million) in 1994 and are expected to be higher at the end of 1995.
  • Market capitalization of the traded companies increased approximately 24% to 45.6 billion dirhams ($12.42 billion) from 36.7 billion dirhams ($10 billion) at the end of 1994.
  • Brokers attributed the increased activity in the market to the flotation of three new companies and low interest rates on bank deposits.
  • A $18 million palm oil factory and a multi-million-dollar salt manufacturing company are expected to offer their shares for subscription in 1996.
  • UAE banks reported better performance due to increased trade and construction sectors in 1995, with eight banks and companies increasing their capital by more than 591.9 million dirhams ($161.28 million).
  • Notable increases in paid-up capital include Emirates Telecommunications Corp. (Etisalat), Abu Dhabi Foodstuff Co., and Abu Dhabi National Hotels Co.

Statistics:

  • Profits made by companies traded on the stock market: 3.28 billion dirhams ($894 million) in 1994.
  • Market capitalization of traded companies: 45.6 billion dirhams ($12.42 billion) as of 1995.
  • Increase in market capitalization: 24% from 36.7 billion dirhams ($10 billion) in 1994.
  • Number of banks and companies increasing their capital: 8.
  • Combined increase in capital: 591.9 million dirhams ($161.28 million) in 1995.
  • Notable increases in paid-up capital:

+ Emirates Telecommunications Corp. (Etisalat): 25% increase to 1.86 billion dirhams ($506 million).

+ Abu Dhabi Foodstuff Co.: 300% increase to 50 million dirhams ($13.62 million).

+ Abu Dhabi National Hotels Co.: 10% increase to 133 million dirhams ($36.24 million).

Sources:

  • United Press International (UPI) - Middle East Business Information Services (MEBIS).
  • Zuhair Kaswani, broker at Al-Sherhan Trading Establishment.
  • Ziyad Dabbas, manager of the NBAD's shares department.
  • Industry sources speaking on condition of anonymity.

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