Fortress Investments, a leading investment firm operating in the Middle East, says that there is a significant increase in capital inflows into UAE from emerging markets, particularly the BRIC countries (Brazil, China, India and Russia), surpassing inflows from MENA (Middle East & North Africa) region.
Hamed Mokhtar, Managing Director at Fortress Investments said: “The UAE is becoming more important on a global scale, in addition to emerging as an unparalleled investment hotspot. The capital invested in the UAE from MENA region is more in the form of individual property assets, whereas UAE’s role in attracting capital flow from BRIC countries is the result of progressive government measures and global partnerships.”
He added: “India commands the lion’s share of BRIC capital coming into the UAE. The UAE is a net importer of capital mainly from emerging markets and regional markets, where capital inflow from developed markets is low.”
This significant revelation comes on the heels of index provider MSCI’s upgrading the United Arab Emirates (UAE) to ‘emerging market’ status, thus putting the UAE in the ambit of the BRIC grouping.
He added: “Financial robustness of the UAE financial markets, specifically Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM), not only spells financial gains but also stronger economic sentiment that boosts the image of the UAE as a global powerhouse that is much valued by groups like BRIC.”
“Finance is playing an important role in enhancing the global standing of the UAE. In flashback, Dubai hosting of the annual meeting of the World Bank and the International Monetary Fund in 2003 provided the first spark to catapulting the Emirate on the global stage. Since then, Dubai and the UAE started to make rapid strides as far as finance generation is concerned.”
Mokhtar added: “Financial advisors are needed today more than ever in the UAE to help clients make smart investment decisions, as the capital inflows are bigger and competition among investment hotspots is higher. This is where financial advisors can fit in to formulate the most feasible and profitable investments schemes for their clients.”