UAE stock markets need government investment portfolio - analysts

Dubai –A group of analysts called for the creation of a sovereign fund for stock investments or a government portfolio to control stock markets in the UAE, given the implausible losses that have been incurred by them since the beginning of the year.

The UAE government and national sovereign funds must interfere to stop those losses, capital market analyst Basel Abu Teima told Mubasher.

An independent entity should be incorporated to promote awareness in markets and supervise thereof, NamaaZone CEO Iyad Aref said.

Aref recommended the establishment of an association for investors in the UAE to restore confidence in the local markets.

The markets’ decline can be traced back to foreign investors and speculators, therefore, foreign investments should be controlled and legalised to avert fluctuations, the analyst stated.

The repeated and groundless loss in the domestic stock markets reveals that they have become more vulnerable to rumours, senior financial analyst at Mena Corp Issam Kassabieh commented.

Companies report losses resulted from mismanagement should be subject to a strict set of control laws, Kassabieh suggested.

Also, the double listing policy is in need of further review, the analyst noted.