India has a major share of BRIC countries' capital coming into the UAE, a leading investment firm operating in the Middle East has said.
The Dubai-based Fortress Investments said the UAE is a net importer of capital mainly from emerging and regional markets.
There is a significant increase in capital inflows into the UAE from emerging markets, particularly the BRIC countries (Brazil, Russia, India and China), surpassing inflows from MENA (Middle East & North Africa) region, said Hamed Mokhtar, Managing Director at Fortress Investments said.
"The UAE is becoming more important on a global scale, in addition to emerging as an unparalleled investment hotspot," said Mokhtar.
"The capital invested in the UAE from MENA region is more in the form of individual property assets, whereas UAE's role in attracting capital flow from BRIC countries is the result of progressive government measures and global partnerships," Mokhtar said.
He also said that India commands the lion's share of BRIC capital flowing into the UAE.
The Gulf Cooperation Council received USD 1.6 billion in total foreign direct investment from India in 2012 - a figure that is only expected to rise over time due to increasing trade relations and the complementary strength of their economies, according to the Institute of International Finance.
The UAE is a net importer of capital mainly from emerging markets and regional markets, where capital inflow from developed markets is low, said Mokhtar.
The revelation comes on the heels of index provider MSCI's upgrading the UAE to 'emerging market' status, thus putting the UAE in the ambit of the BRIC grouping.
"Financial robustness of the UAE financial markets, specifically Abu Dhabi Securities Exchange and Dubai Financial Market, not only spells financial gains but also stronger economic sentiment that boosts the image of the UAE as a global powerhouse that is much valued by groups like BRIC," Mokhtar said.
