Since the start of 2013, the Dubai stock market has registered a near 200 per cent gain to become the best performing financial market in the world.
The CNN reported that the Gulf emirate’s securing of the World Expo in 2020 was likely one factor behind this success as was the wider UAE’s reputation as a safe-haven in a region riddled with uncertainty.
Oil averaging more than $100 a barrel for three years running is driving growth towards record spending on infrastructure.
The UAE has “a strong balance sheet” and lot of “promising prospects,” said the Research Director at Barclays, Alia Moubayed, when asked about the reasons behind investor bullishness over the last 18 months.
Some even believe there is more to come before the Dubai Index tops out.
“The Dow Jones exceeded 165,000 points,” said veteran Dubai trader Zakaria Al-Assar. “Still, Dubai (is at) 5,000, we are looking for more, inshallah.”
These strong expectations have led to an upgrade for the UAE from the riskier investor category of frontier market to emerging market by financial index firm, MSCI.
Alongside neighboring Qatar, which was also upgraded this week, the UAE is now considered by MSCI to have the same investment status as the likes of China and Brazil.