Posted by Neil King
About $40 billion of new foreign investments will flow into the UAE following a rating upgrade by the global stock market index MSCI, it has been forecast.
Rashed Al Baloushi, director of operations at the Abu Dhabi Securities Exchange (ADX), made the prediction as he argued that the upgrading of Arab stock markets by international institutions is "of great importance" to the investment aims of the region.
Speaking during the annual conference of the Union of Arab Stock Exchanges, which took place in Beirut this week (October 25th-26th), he said: "The success achieved by the financial markets in the UAE through the upgrade from frontier to secondary emerging market by FTSE is a milestone in that direction, while we expect a similar upgrade by MSCI soon which, according to experts will result in the flow of about US$40 billion of foreign investments to the country."
The comments come after ADX successfully launched its Exchange Traded Funds trading platform earlier this year.