Page 100 - AAE PR REPORT - August 2024

8/22/24, 1:14 PM The stock lure: IPOs and dividend payouts are magnets for yield-hungry investors in GCC | The National
Emaar Group, including Emaar Properties and Emaar Development, and Aldar in Abu

Dhabi have displayed consistent performance. All these names have done well on the

business side and tend to distribute dividends. These factors appeal to retail investors, he

adds.

Shift in investment trends

Within Saudi Arabia’s Tadawul index, some mid-cap and small-cap stocks have performed

much better than larger companies like Aramco and Saudi National Bank, according to Mr

Masood.

“That is a clear indication that discerning investors don't just buy something because it's

big or ranks high on market cap scale. They pay attention to fundamentals,” he says.

“It also indicates that investors favour certain themes. In the case of Saudi Arabia, the

theme is domestic demand-oriented businesses because they tie into Vision 2030.”

In the UAE, stocks of banks and real estate companies have performed well, as well as

newer companies like Parkin.

“None of these are speculative counters. When you think of retail investors, one assumes

incorrectly that they can be speculative. But, looking at the recent past, that would not

appear to be the case,” Mr Masood says.

Mr Halawi believes the region is moving towards infrastructure, energy transition and

technology.

Ms Dabeet from amana says while gold remains one of the most popular assets for trading,

regional retail investors are diversifying into multiple assets like cryptocurrencies,

alongside trading products such as FX, futures and cash contracts for differences.

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