In this report, Blominvest Research offers an investor’s update on Abu Dhabi’s stock index’s performance up to Q3 2016, with a particular focus on the real estate sector and its individual companies. The report also includes an economic backdrop for the sector.
- The Abu Dhabi Stock Market Index (ADSMI) decreased 0.16% YTD return as of the 31st of October 2016 due to the negative performance of the financial sector, the largest sector within the index based on market cap (54.9%), even though the telecom, real estate and utilities sectors posted exceptional returns.
- The Abu Dhabi Real Estate (ADRE) Index gained 17.95% YTD return up to October 31st, 2016, mainly due to projected investment by Abu Dhabi’s real estate firms and favorable financials.
- The ADRE index showed signs of stability after a highly volatile 8 years since the financial crisis in 2008. The stability is driven by investment plans in the public and private sector, as well as good financial results that have reassured investors on the sector’s profitability.
- Aldar Properties, the largest real estate publicly traded firm, announced a USD 817 Million acquisition plan to drive growth within its recurring revenue business.
- The ADRE’s top performer was Eshraq Properties with a 43.63% YTD return, while Sharjah Group recorded 11.11% YTD, and Aldar Properties and RAK Properties had good returns with 13.79% and 12.72% YTD respectively as of the 31st of October 2016.
Click here for the full report: ADMI Real Estate Sector Report