The average price-earnings (P/E) ratios of UAE-listed companies have declined to less than 13 times, which made its shares the most attractive in the GCC, analysts told Mubasher.
Local investors are currently focusing on stock collection, as many stocks reached low price levels that could also encourage investment funds and foreign institutions to build new positions, vice president of Investment Research at KAMCO Raed Diab commented.
Moreover, oil prices are an important factor that dominates the performance of the UAE markets, given their impact on the government revenues, chief market analyst at Century Financial Brokers Vijay Valecha said.
Crude prices, which have been grown in the recent years, may support a 3% growth in the UAE gross domestic product (GDP) and, consequently, pave the way for the stocks to go up, Valecha noted.
Also, the Emirati cabinet decisions to raise the foreign shareholding ceiling to 100% and launch a 10-year residency visa system are expected to push up the local markets, he revealed.