The United Arab Emirates is on the verge of a monumental achievement as their stock exchanges are set to house companies worth $1 trillion. This accomplishment has been fueled by the remarkable performance of the Abu Dhabi Securities Exchange, which is managed by the UAE’s most affluent and largest city-state. As of March 31, the UAE’s markets ranked No. 17 in the world, surpassing nations such as Brazil and Spain.
Nevertheless, global investors looking to enter the Abu Dhabi market will face a unique challenge. Sheikh Tahnoon bin Zayed Al Nahyan, a member of the royal family and one of Abu Dhabi’s deputy rulers, holds an overwhelming influence over nearly every aspect of the market’s operations. Companies affiliated with the sheikh or under his supervision account for at least 65% of the benchmark FTSE ADX General Index.
This level of control by a single individual raises concerns about transparency and governance within the Abu Dhabi market. While its impressive track record cannot be denied, potential investors must carefully weigh the implications of such concentrated power in the hands of one individual before making any investment decisions.
