Sum of $100m raised by Invest AD for UAE equities fund

Monday saw Invest Ad, earlier called the Abu Dhabi Investment Company (ADIC), announcing that it had raised more than $100m for an equities fund it rolled out last month, to invest in the UAEs' stock markets.

The international and local investors showed an increasing interest in the undervalued UAE stocks by investing in the fund. The company had also rolled out three further equities funds to take advantage of outperforming economies in the Middle East and North Africa (Mena) and Africa regions this month.

Invest AD chief executive officer Nazem Fawwaz Al Kudsi said: "International investment portfolios are often seriously under-weighted in this region. This is usually not a matter of strategy but a result of a lack of good research and limited access to the market. Our funds can help to redress that imbalance."

According to the firm, UAE stocks were trading at about 7.8 times earnings, while global and emerging market stocks were trading at about 7.8 and 14.5 times earnings respectively.

The firm said: "In addition, UAE sticks are also trading at a slight discount to book value, compared to global and emerging stocks, which are priced on average over 1.5 times book value."

The investment of the UAE equities fund will take place across the Abu Dhabi Securities Exchange, Dubai Financial Market and NASDAQ Dubai.

The GCC equities fund, the Mena equities fund and an emerging Africa equities fund - to tap economies with fast growing, young population and where governments were heavily investing in infrastructure - were included in the other three funds launched by Invest AD.

 

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