Narratiive Tags - Khaleej Times Desktop
Local Business

Eshraq to invest Dh500m in technology, reduce exposure to real estate

Waheed Abbas/Dubai
Filed on August 19, 2020

(KT file)

Abu Dhabi-based Eshraq Investments will invest Dh500 million in the technology sector over the next three to five years.

The company has also announced that it is looking to reduce its exposure to real estate sector. 

Eshraq Investments is also looking to balance its diverse portfolio over the next few years, it said in a statement to the Abu Dhabi Securities Exchange, where it is listed. 

"The board of directors agreed on exploring investment of up to Dh500 million in the technology sector over the next three to five years. Furthermore, the board requested from the Investments and Projects Committee to seek opportunities in the technology sector and submit a report to the board for further discussion," said the statement.  

"The board also discussed the relevant strategy to reduce the company's exposure to the real estate sector, such that over the next three to five years the company's portfolio of assets is balanced between real estate, technology, and other financial investments," it added. 

Companies are reducing their exposure to real estate due to consistently high supply keeping the sector under pressure and this trend could continue in the near to medium term. Residential property prices in Dubai and Abu Dhabi are down around 30 per cent and 28 per cent respectively, since their peak in mid-2014. 

"The UAE real estate sector has slowed significantly during the past five years and we expect coronavirus to further slow home sales and lower rental prices. We expect a decline in residential prices in the next 12-18 months because most UAE markets are still suffering from persistent imbalances as a result of excess supply," said Lahlou Meksaoui and Mario Santangelo, analysts at Moody's Investors Service, in their latest report. 

Eshraq Investments posted net loss of Dh26.69 million in the first half of 2020 as compared to Dh4 million profit for the same period last year. While third-quarter profit jumped from Dh1.89 million in Q2 2019 to Dh20.45 million in Q2 this year. Its shares on Wednesday closed 0.23 per cent lower at Dh0.430 per share. 

ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Business
MORE FROM Khaleej Times
CurrentRequestUnmodified: /business/local/higher-fdi-inflows-to-create-more-jobs-in-sharjah macro_action: article, macro_profile: , macro_adspot:
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios khaleejtimes - HUAWEI AppGallery