Author: fatimamaryam105

Sterling opportunity: UAE investors cherry-pick in the UK

The British pound has resumed its slide against the UAE dirham of late, making the UK
market more attractive for investments for UAE investors, especially for expats from the United Kingdom residing in the UAE.
The real estate investment activity in the UAE from UK investors has reduced compared to previous years in terms of total value, primarily due to the devaluation of the British pound since Brexit. Moreover, the UK market has also become more attractive for investment specifically for expats from the United Kingdom residing in the UAE, said Ryan Fansa, director – head of real estate, Al Masah Capital.
“Regional buyers also have been active in the UK market as the weakened pound has enabled dollar-based investment institutions in the region to acquire real estate assets at a 10 to 15 per cent discount compared to the pre-Brexit market,” Fansa added.Schon Properties COO Noorul Asif doesn’t see much impact of the decline in the value of the
British pound on investments in the UAE, claiming that it’s merely psychological.
“Price of properties vary depending mostly on the demand-supply situation. When the British pound loses value, properties become cheaper in Britain, regardless of any other development. Investors take advantage of the situation mostly through buying and selling of currency,” he said, adding that “real estate is a long-term investment – it’s not a stock market and an investor should not treat real estate like one. If you have money and a long-term goal, then invest in real estate in Dubai – simply because the property price is at the right level. And hold it for three years at least. Then exit – if you have to benefit from capital gains. Otherwise, enjoy the rent windfall since Dubai offers some of the best rental returns,” he added. As per a recent report from real estate advisory Savills, Middle East and Far Eastern investors nearly doubled their capital investment in the UK’s regional markets in 2016 to around £1.9 billion (Dh8.92 billion).
The UAE and Britain are keen to take bilateral trade to £25 billion per annum by 2020. There are more than 200,000 British passport holders working in the UAE. In 2016, Dubai attracted Dh25.5 billion in foreign direct investment (FDI) inflows in 247 projects. UK, Canada, France, Spain and the US were among the leading sources of capital and together, the US, UK, India, Germany and Italy accounted for 152 FDI projects, which was 59 per cent of the total.
In H1 2017, Indian, Pakistani, British, Chinese and Canadian nationals took the first five places in terms of investment in Dubai, with 15,062 investors generating a total value of Dh28.6 billion. According to the Dubai Land Department, investments by 3,372 British nationals in Dubai’s real estate reached Dh5.8 billion last year. Promoth Manghat, CEO, UAE Exchange, said property in the UK is still a reliable segment to
invest in. Since the stock market is expected to stay volatile right through 2017, it’s better to stay cautious there. Meanwhile, investors can explore the possibilities of investing in various avenues worldwide, including the UAE. They can also transfer funds to get more pounds back home, though there is a risk that it could trigger inflation. Sudhesh Giriyan, COO, Xpress Money, noted that a fall in the price of the pound is making the UK a less expensive market to buy into from overseas.
“So, for British expats and other investors in the UAE, the period leading up to Brexit will yield opportunities for investment in assets. There has also been a cooling of house prices in the UK, which means opportunities will be thrown up. A favourable exchange rate between the dirham and pound also means it’s a good time for expatriates to top up their pensions and saving plans back home.”

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Trade values dwindle in UAE markets… again : Al masah capital

Dubai: Trade values in the UAE’s equity markets dwindled even further on Sunday as
a lack of catalysts coupled with the summer lull kept investors away.
The Dubai Financial Market (DFM) index slid 0.61 per cent to reach 3,602.55, with
only Dh169 million worth of trades in the market, 40 per cent lower than the last
trading session.

“Lack of catalysts coupled with the summer lull and the approaching Eid break
dominated trading activities across the regional markets. Along with the end of
earnings season, regional markets have been in a very thin range, trading volumes
declining, and no major macro news affecting stocks’ prices,” a note from Al Masah
Capital said.Markets in the UAE will be closed from August 31 to September 3 for the Eid Al Adhaholiday. On the Dubai bourse, GFH Financial Group accounted for 23 per cent of the market’stotal trade value, with its share prices falling 3.26 per cent to reach Dh1.78.

“GFH shares alone accounted for about a quarter of trade on DFM. Investors were
expecting the company to distribute dividends, but there really hasn’t been much
clarity or transparency from [GFH] regarding that, which is why we’re seeing that
drop in share prices,” said technical analyst Osama Al Ashry. In two separate statements to the bourse, GFH said it is still awaiting regulatory approvals regarding dividend distribution. Al Ashry said he expected GFH share prices, however, to reach their resistance level of Dh2.5, and possibly touch Dh3, in the fourth quarter of 2017.
Meanwhile, Emaar share prices fell 1.17 per cent to reach Dh8.43, as Union
Properties dropped 0.88 per cent. DFM share prices inched down 0.87 per cent while
Amlak gained 0.89 per cent.
“The DFM index has been trading sideways in the 3,500-3,650 range for quite some
time now, and that has to do with many factors that include political uncertainty in theregion as well as oil prices, which have been below $50 (Dh183.65). From a
technical perspective, the index has a target of 3,780, and I think the index can reach
that, though it will take a while especially if liquidity remains weak,” Al Ashry said.
In Abu Dhabi, the main index slid 0.31 per cent to reach 4,479.99, with only Dh50.9
million worth of trade in the market.

Al Masah Sterling opportunity: UAE investors cherry-pick in the UK

The British pound has resumed its slide against the UAE dirham of late, making the UK
market more attractive for investments for UAE investors, especially for expats from the United Kingdom residing in the UAE.

The real estate investment activity in the UAE from UK investors has reduced compared to previous years in terms of total value, primarily due to the devaluation of the British pound since Brexit. Moreover, the UK market has also become more attractive for investment specifically for expats from the United Kingdom residing in the UAE, said Ryan Fansa, director – head of real estate,  Al Masah Capital. “Regional buyers also have been active in the UK market as the weakened pound has enabled dollar-based investment institutions in the region to acquire real estate assets at a 10 to 15 percent discount compared to the pre- Brexit market,” Fansa added.

Schon Properties COO Noorul Asif doesn’t see much impact of the decline in the value of the British pound on investments in the UAE, claiming that it’s merely psychological.
“Price of properties vary depending mostly on the demand-supply situation. When the British pound loses value, properties become cheaper in Britain, regardless of any other development. Investors take advantage of the situation mostly through buying and selling of currency,” he said, adding that “real estate is a long-term investment – it’s not a stock market and an investor should not treat real estate like one. If you have money and a long-term goal, then invest in real estate in Dubai – simply because the property price is at the right level. And hold it for three years at least. Then exit – if you have to benefit from capital gains. Otherwise, enjoy the rent windfall since Dubai offers some of the best rental returns,” he added.
As per a recent report from real estate advisory Savills, Middle East and Far Eastern investors nearly doubled their capital investment in the UK’s regional markets in 2016 to around £1.9 billion (Dh8.92 billion).
The UAE and Britain are keen to take bilateral trade to £25 billion per annum by 2020. There are more than 200,000 British passport holders working in the UAE. In 2016, Dubai attracted Dh25.5 billion in foreign direct investment (FDI) inflows in 247 projects. UK, Canada, France, Spain and the US were among the leading sources of capital and together, the US, UK, India, Germany and Italy accounted for 152 FDI projects, which was 59 per cent of the total.
In H1 2017, Indian, Pakistani, British, Chinese and Canadian nationals took the first five places in terms of investment in Dubai, with 15,062 investors generating a total value of Dh28.6 billion.

Most notably the poor results, summer vacations and lack of incentives Analysts : AL-MASAH

Financial experts and analysts summarized the main reasons for the low levels of liquidity in the local equity markets in four factors: summer vacations, the absence of incentives and the weak results of some companies in half as well as the global tension.

Analysts and analysts said the liquidity recovery is dependent on the emergence of new catalysts that encourage investors to inject more money, stimulate risk and buy stocks, expecting liquidity to recover as the third-quarter season begins at the end of September. Liquidity levels in the markets fell significantly over the sessions this week to record their lowest levels in several months after falling the lowest 250 million dirhams on average.

Seasonal conditions

Akbar Nakafi, chief executive and head of asset management at Almasa Capital, said the low levels of liquidity were due mainly to seasonal conditions, including summer vacations and the approach of Eid al-Adha.

Nakafi added that the absence of major catalysts at the moment has caused a significant decline in activity in the UAE markets, adding that investors currently prefer to watch and not inject liquidity until the summer period ends.

Nakafi expects investors to re-engage heavily in the markets in September as volumes and values ​​begin to rise again as conditions improve and new news and catalysts emerge.

New liquidity

Ehab Rashad, CEO of Al Safwa Mubasher Financial Services, said that liquidity levels in the local markets have fallen by an unprecedented level, with anticipation and caution on investors’ transactions in light of the absence of incentives after the end of corporate disclosures for the first half profits.

Rashad pointed out that the results of some companies were disappointing investors, which shocked many and prompted them to watch and not inject new liquidity until the emergence of incentives to encourage them to take risks and buy shares.

Rashad pointed out that there are other factors affecting liquidity, including summer holidays, as well as tensions on the international scene between the United States and North Korea. He expected liquidity to improve relatively in September and to be very active with the start of the third quarter results season.

Rashad said markets are still moving in an upward direction and with the return of liquidity to normal levels, it will target higher levels and higher peaks that could push the Dubai Financial Market to around 4,000 points before the end of the year.

Absence of stimuli

Walid Al-Khatib, managing director and partner at Global Securities and Equity, said that local equity markets are currently suffering from a drop in liquidity, which hampers their rise strongly, citing the main reason for the summer holidays and holiday periods as well as the absence of incentives after the end of the corporate season. In the first half.

“The results of some of the weak companies have caused a shock to investors, and therefore a clear reluctance to inject more liquidity in the markets, especially after the huge losses incurred by some real estate companies due to exceptional circumstances.

Al-Khatib predicted that the markets will continue to perform at the same pace until indications of the results of the third quarter, which may boost investors’ appetite and encourage them to inject new liquidity, boost stocks and push them up.

Banking sans branches: UAE

Smartphones are now the gateway to your banking transactions, paving the way for morenmobile apps and digital payment solutions to ease your lifestyle by reducing branch visits. This has indeed kept pressure high on the UAE banking sector to innovate and turn customer satisfaction to customer delight. Blockchain technology, Emirates Digital Wallet, cyber security, mobile apps, fintech solutions, data analytics, artificial intelligence and robotics are some of the key initiatives being embraced by banks to welcome the digital era. The UAE banking industry, which has
proved resilient in the past two years, has come up with digital solutions to stay afloat in market competition, building stronger foundations to welcome 2018 with a positive outlook.

“The UAE banking sector faced a trying time through the economic slowdown. Slower loan growth implies more pressure to perform, mainly with the increase of the Fed rate. In spite of these challenges, according to the UBF Trust Index, consumer perception of the UAE banking sector remained robust with majority of consumers exhibiting a positive outlook about the UAE banking sector,” said Abdul Aziz Abdulla Al Ghurair, chairman, UAE Banks Federation (UBF), a body represented by 49 member banks.
With around 92 per cent Internet penetration and having a large user base of smartphones, the UAE banking industry is a hotbed for innovation and digital transformation. An important way of staying ahead of the curve will be by integrating innovative digital solutions, according to the UBF’s latest report.
In a recent survey by UBF – with a sample size of 1,530 – it is evident that among 85 per cent are aware of mWallet and 72 per cent had positive impression in 2016. Almost 73 per cent areconfident in banks’ contribution to UAE economic development. However the key challenges are educating customers and setting the right expectations up front; offering investors better returns, and helping them grow their wealth and moving from customer satisfaction to customer delight with world-class customer service.

Economy – Lack of motivation and approaching Eid holiday dominate the trading activities

The factor of absence of motivating forces and moving toward Eid occasion ruled exchanging exercises in territorial markets. With the finish of the increases season, exchanging the territorial markets fell pointedly as there was no real news influencing stock costs.

Four out of eight pointers saw unassuming ascents a week ago, the Almasa Capital report said. Oman accomplished the best execution of + 1.4%, yet this did not change the way that it is as yet one of the most noticeably bad execution, which demonstrated a negative execution of 14.5% since the start of the year. In the mean time, Riyadh, Dubai and Bahrain were the best gainers for the week, picking up + 0.9%, + 0.6% and + 0.2%, individually. Qatar is as yet the most noticeably awful of its associates, proceeding to fall because of the repercussions of the geopolitical circumstance and fell by – 1.7% amid the week, bringing its misfortunes since the start of the year to – 14.2%. Egypt fell – 1.5% amid the week, which was required because of the last bounce to near 14000 focuses, where the record achieved its most extreme level, and afterward the market bounced back to resistance levels at 13000 focuses.

Kuwait and Abu Dhabi stayed unaltered, with Kuwait keeping up its best performing execution on a yearly premise since the start of the year, up 19.8%. There are just days left to exchange August for some territorial records. Before the week’s over, provincial markets are probably going to encounter frail exchanging volumes with insignificant market movement.

Banking sans branches

Smartphones are presently the gateway to your saving money exchanges, making ready for additional versatile applications and computerized installment answers for facilitate your way of life by decreasing branch visits.

This has in reality kept weight high on the UAE managing an account part to develop and turn client fulfillment to client amuse.

Blockchain innovation, Emirates Digital Wallet, digital security, versatile applications, fintech arrangements, information investigation, counterfeit consciousness and mechanical technology are a portion of the key activities being grasped by banks to welcome the computerized period. The UAE managing an account industry, which has demonstrated strong in the previous two years, has thought of computerized answers for remain above water in showcase rivalry, building more grounded establishments to welcome 2018 with an inspirational standpoint.

 

Healthy competition :

The UBF overview likewise calls attention to that surge in non-keeping money advertise members is additionally making sound rivalry for banks.

Ramachandran said a portion of the non-saving money members that contend among others incorporate trade houses, fund organizations, venture banks, private managing an account organizations and so on while there are great capabilities inside the banks in the retail and corporate financing side of the business.

“They confront extreme rivalry from trade houses (settlements) and private banks (riches administration arrangements), however this crevice is being tended to by a few banks and are scaling up their ability in this circle too.”

As far as resource estimate, Al Masah Capital originator Shailesh Dash said the UAE remains the biggest keeping money industry in the area with resources of $710.8 billion starting at 2016, up from $453.4 billion out of 2011, mirroring a CAGR of 9.4 for every penny for the period.