UAE: Valuation too high, wait for the market to cool down, says National Bonds CEO

Valuations are too high in the UAE and region, therefore, wait for the market to cool down, said the chief executive of National Bonds, a Sharia-compliant saving and investment company.

“This is not the right market for acquisitions because valuations are at their highest level ever. You need to wait for the market to cool down and then look at partial or complete acquisitions in the market,” Mohammed Qasim Al Ali said during a press conference at the launch of the National Bonds Savings Index.

He further elaborated that valuations are peaking across the board in the region. “Sometimes, if there is a right discount, then it makes sense to go for acquisition,” he said, adding that as and when the right time and opportunity arises that meet their criteria, they may go for it.

However, he said there is nothing on the table in terms of acquisitions. The company has a diversified portfolio with exposure to real estate, equity markets, fixed-income schemes and others.

The company invested Dh200 million as an anchor investor in the Al Ansari Exchange IPO. In June, National Bonds Company announced its acquisition of an additional 5 per cent stake in the Taaleem Holding Group, solidifying its position as the largest shareholder with a 22 per cent stake.

“We believe in the company’s vision because the UAE education system is always prone to growth as of population is growing and more and more people moving into Dubai and looking for the best schools in town. Our increase in stake to 22 per cent is more than enough for us,” Al Ali said during the media briefing.

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