Ninety One Plc is increasing investments in UAE stocks as global trade war concerns rise. The company’s emerging-markets equity team manages $11 billion and seeks markets that are less affected by US tariffs.
Varun Laijawalla, co-portfolio manager, explained that UAE stocks attract investors because of the country’s economic policies. Unlike the US, the UAE signs more trade agreements and welcomes immigration. This approach makes its market more stable.
Since November, the fund has bought more UAE stocks. It added shares in real estate company Emaar Properties and Abu Dhabi Commercial Bank. Another important addition was Talabat Holdings, a food delivery company. Talabat held the biggest tech IPO in the Middle East last year.
UAE stocks attract investors looking for stability. The American Beacon Ninety One Emerging Markets Equity Fund gained 13% in the past year. This growth places it among the best-performing funds.
While UAE stocks attract investors, the fund also focuses on other regions. China and India remain its biggest markets, making up 40% of the portfolio. Xiaomi provided the highest returns in 2024. The fund also owns shares in food delivery company Meituan and online travel agency Trip.com.
Meituan plans to expand into the Middle East, its first market outside China. Three months ago, the fund also bought shares in Turkish defense company Aselsan. The company benefits from Europe’s rising defense spending. Aselsan’s stock price has increased by 62% this year.
Ninety One increased its UAE stock holdings by 3% compared to the MSCI Emerging Markets Index. UAE stocks rank fifth outside Asia in the index. However, Emaar and Talabat have risen only 2%, while Abu Dhabi Commercial Bank gained just 0.6%.
