ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Sheikh Tahnoon's Holdings Drive UAE's Stock Exchanges Toward Trillion-Dollar Milestone

As of March 31, 2024, the Sheik's companies and those he oversees had at least 65% of the benchmark FTSE ADX General Index
PUBLISHED APR 14, 2024
Cover Image Source: Photo by Aleksandar Pasaric | Pexels
Cover Image Source: Photo by Aleksandar Pasaric | Pexels

The United Arab Emirates' rulers are set to achieve something that they have long desired. Their stock exchanges will soon be home to companies valued at over $1 trillion. As of March 31, 2024, Sheikh Tahnoon bin Zayed Al Nahyan's companies and those he oversees had at least 65% of the benchmark FTSE ADX General Index, as per Bloomberg. Out of this, the biggest is his conglomerate International Holding Co., or IHC, which has investments in everything from Rihanna’s lingerie line to Elon Musk’s SpaceX, as per the publication. 

 His Higness Sheikh Sultan Bin Tahnoon Al Nahyan Chairman of the Abu Dhabi Tourism Authority with Prince Andrew, Duke of York  | Getty Images | 	David Cannon
Image Source: His Highness Sheikh Sultan Bin Tahnoon Al Nahyan with Prince Andrew | Getty Images | Photo by David Cannon

IHC has climbed more than 400-fold since its inception in 2019. The company, which was first started as a fish farmer, is now valued at over $240 billion, way more than McDonald’s Corp or Disney. Co. IHC also makes money from trading on the very exchange where it’s listed. 

Sheikh is also the chief of Abu Dhabi's ruling family, the Al Nahyan family, the world's wealthiest family. According to experts, the Abu Dhabi market's peculiar structure may be bad news for global investment managers who want to profit as its main index has almost tripled since April 2020, making it the world's top-performing major market.

"The interlinkages of assets and the concentration of control in Sheikh Tahnoon’s hands, despite being neither ruler nor crown prince, are unusual even by Gulf standards," says Steffen Hertog, an associate professor at the London School of Economics, who studies the region.

"They also raise questions about whether there’s an equal playing field with private competitors and how well minority shareholders’ interests are protected," he added.

According to IHC's CEO Syed Basar Shueb, "Everybody has access to the company. I don’t see why people complain that it is not open for foreigners," he said in an interview. "Foreign investors always go to those traditional brokers, those who cannot provide that service. I have to make sure that I feed business to my own company."

Martin Kaymer of Germany, holds the trophy with the presentation party His Highness Sheikh Hazza Bin Zayed Al Nahyan The National Security Advisor, Vice Chairman of the Executive Council, and Chairman of the Abu Dhabi Sports Council | Getty Images | David Cannon
Image Source: Martin Kaymer holds the trophy with the presentation party His Highness Sheikh Hazza Bin Zayed Al Nahyan | Getty Images | Photo  by David Cannon

The sheikh has steadily expanded his influence in the market, leveraging his holdings and position to acquire companies like Zambia’s Mopani copper mine. Additionally, efforts to stimulate the domestic economy have been propelled forward. The UAE's wealth funds and business hubs have actively diversified away from reliance on oil, a feat made possible through the concerted efforts of the ruling family.

Besides the robust stock market, the UAE has bolstered its global significance through flashy records. Since the beginning of 2020, the total market value of companies listed in the UAE has soared, reaching an impressive $950 billion, sourced from both Abu Dhabi and Dubai.

Furthermore, various strategies have been employed to drive these changes and attract investors, including initiatives such as permitting foreigners to own 100% of businesses and successful initial public offerings like Dubai Electricity & Water Authority PJSC's, which raised $6.1 billion.

"Capital markets have played a crucial role in facilitating this influx of international investments into the local economy, supported by an ambitious privatization agenda," explains Rami Sidani, head of Middle East and North Africa at Schroders Investment Management.

MORE ON MARKET REALIST
She had asked for $250,000 when she came and she walked away with close to $400,000.
7 hours ago
The showrunners must have had a storm on their hands when they were called out.
8 hours ago
Steve Harvey burst out laughing when he heard that answer, as was the case in much of the round.
9 hours ago
The guest wanted more than $3,000 for the item but the expert crushed his hopes.
1 day ago
The game even had a twist which saw Drew Carey doing something special for the contestant.
1 day ago
One had to pay attention to catch the error, and the show has a lot of fans like that.
1 day ago
The contestant's nonchalant behavior after answering left everyone on the show stunned.
1 day ago
The host was left red-faced and he even apologized to the contestant later on for his actions.
2 days ago
The guest was not expecting the low valuation of his item given by the expert.
2 days ago
The host perhaps did not expect to hear that answer and was left impressed.
2 days ago
The contestant was over the moon with her victory, which she made look quite easy.
3 days ago
The guest could do nothing more than accept his bad luck, and that is exactly what he did.
3 days ago
The host had his head down and could not even look at the board as the answer was revealed.
3 days ago
Almost all of the answers given were either shocking or hilarious, or both.
4 days ago
The pawn shop owner had doubts about the beverage's condition and was proven right.
4 days ago
The pawn shop owner has always been a big fan of WWII memorabilia and this was no different.
5 days ago
The contestant turned to the audience for help and it paid massive dividends.
5 days ago
None of the three contestants wagered anything in the final round, which was a first.
5 days ago
Cuban was excited to try them on and did a good job despite not having too much experience.
5 days ago
The contestant, Christina Derevjanik became the biggest winner ever in the show's history.
6 days ago