UAE stock market capitalisation-to-GDP ratio hits 63 percent

ABU DHABI, 21st October, 2019 (WAM) -- The capitalisation of UAE capital markets amounted to AED895.5 bn by the end of the second third of October, up 5.6 percent as compared to early this year, according to figures revealed by the country's two main bourses.

The market value of listed public and private joint stock companies is projected to further increase and break the AED900 bn mark by the end of the year, as per economic growth forecasts.

The capitalisation of traded companies on October 21st accounted for 63 percent of the UAE's Gross Domestic Product in yet a new indicator of the resilience of liquidity in UAE stock markets.

The improvement in listed companies' stocks is driven by strong FDI flows and increased share capital, as the figures indicate.

The banking sector accounted for 52 percent -AED468.8 bn- of market capitalisatin at the Abu Dhabi Securities Exchange and Dubai Financial Market, followed by the CIT sector, at a total value of AED168.75 bn. Then come the realty and construction sector, AED104.86 bn, and the energy sector with AED43 bn.

The stock market capitalisation-to-GDP ratio hit 53 percent in 2014, before edging up to 56 percent in 2015, then to 62 percent in the following year, before nosediving to 59 percent in 2017 and finally rallying to 63 percent this month.

WAM/Hatem Mohamed