Investopia Global Talks - India

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Published January 31, 2024

2 minute read

Role of Public and Private Markets in Supporting Economic Growth: What are the Current Connections between UK and UAE Markets and how can they be Enhanced to Support Growth?

In this session, industry experts convened to explore the crucial role of public and private markets in bolstering economic growth. The discussion revolved around the current state of connections between the United Kingdom and the United Arab Emirates markets and the strategies for further strengthening these ties to support growth.

Session Speakers: 

Charlie Walker

Charlie Walker

Deputy CEO - London Stock Exchange

Constantin M. Cotzias

Constantin M. Cotzias

European Director at Bloomberg

Nabeel Albloushi

Nabeel Albloushi

Head of MSS MENAT - HSBC

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Key Takeaways

  • Both the UK and UAE emphasize the significance of open global markets for enhancing foreign trade and investment.
  • The UK's extensive regulatory reforms are set to open new opportunities for collaboration, particularly with the UAE, by making capital markets more accessible and efficient.
  • There is a strong foundation for collaboration between the UK and UAE markets, with potential growth opportunities in sectors like life sciences, technology, and green energy.
  • Dual-listing offers considerable advantages for investors and consumers in both the UK and UAE, providing a platform for greater market access and liquidity.
  • There are emerging opportunities for private wealth and family offices to invest in various sectors within both jurisdictions, driven by stable and progressive market environments.

The central theme of the session revolved around the imperative need for collaboration between the UK and UAE markets. Constantin Cotzias, European Director at Bloomberg, underscored the significance of focusing on finance as a strategic priority for enhancing economic growth. Nabeel Albloushi, Head of MSS MENAT at HSBC, pointed out the inherent synergies between the two markets, fueled by a longstanding relationship and the UAE’s impressive 53-year journey of progress. He positioned the UK as an ideal partner for furthering this growth.

Public markets, both in the UK and globally, face a host of challenges. However, Charlie Walker, Deputy CEO of the London Stock Exchange (LSE), highlighted the UK’s robust regulatory reform agenda as a beacon of hope. The reforms seek to bolster London’s position as a global financial hub. Moreover, he emphasized the symbiotic relationship between public and private markets, creating a dynamic ecosystem poised for future growth.

A transformative concept on the horizon is the “blended market.” As elucidated by Walker, this innovative approach aims to bridge the divide between public and private funding. It empowers private companies to access public funding more readily, opening up new avenues for investors and aligning with the vision of increased global connectivity and cooperation.

Albloushi offered insights into what draws investors to the UAE, including the quality of life, ownership options, residency benefits, and the UAE’s resolute response to the COVID-19 pandemic. The UAE has emerged as a compelling destination for both talent and capital, attracting over 100 new asset managers.

The UAE’s reputation for political stability and progressive regulations has played a pivotal role in earning the trust of investors. These attributes have been instrumental in attracting substantial interest and capital. Conversely, the UK’s reforms are seen as apolitical, geared towards fostering growth irrespective of political transitions.

The discussion explored the worldwide trend of prioritizing domestic capital markets for economic security and sovereignty. This shift presents a unique opportunity for the UK and UAE to deepen their cooperation through mutually beneficial bilateral agreements, thereby reducing barriers to capital markets.

The panel outlined key areas for further cooperation, including the strengthening of ties in fixed-income markets and the expansion of equity listings. Sustainability and green finance initiatives were also identified as promising sectors for mutual growth.

Beyond the financial sector, the UAE’s logistics, tourism, real estate, and robust economic growth were identified as attractive sectors for investment. The UAE’s status as the world’s third-largest re-export sector adds to its appeal as a prime destination for diversification.

As the UK and UAE navigate regulatory changes and leverage their respective strengths, closer collaboration promises a more prosperous financial future for both nations. The session illuminated the growing synergy between the UK and UAE markets, underscoring their pivotal role in fostering global economic growth.

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