Most important factors affecting the portfolio investment in UAE
no copy from the internet3 pages

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Most important factors affecting the portfolio investment in UAEno copy from the internet3 pages

David · Accepted Answer

Foreign portfolio investment is referred as investment by non residents in the securities of a 
country. Such securities include shares, bonds of corporate, government bonds, convertible 
bonds, Infrastructure securities etc. Before making such investments, the prospective investors 
consider a number of factors related to the economy in which they wish to invest. Such factors 
in general are as follows- 
1. Legal framework 
2. Accounting Framework 
3. Industrial growth and industrial environment 
4. Political stability 
5. Crime rate 
6. Safety of investment 
7. Expected returns (Considering projections of economic growth) 
8. Possibility of repatriation of income 
9. Taxation impacts for the investor 
10. Inflation rates 
11. Interest Rates 
12. Liquidity of funds 
13. Efficient dispute settlement 
All the above factors are being discussed in context of United Arab Emirates (UAE)1 as 
follows- 
                                                           
1
 Hassan Al-Tamimi, H. A., & Anood Bin Kalli, A. (2009). Financial literacy and investment decisions of UAE investors. The Journal of Risk Finance, 10(5), 500-
516. 
1. Legal framework2 – The laws in UAE favor the foreign investments. There are primarily 
four major federal laws. The Companies Law, the Commercial Agencies Law, the 
Industry Law, and the Government Tenders Law. The Federal Commercial Companies 
Law (Law No. 02, 2015) was issued on April 2015. All such changes have been made to 
strengthen the legal framework so to ensure higher portfolio investments in UAE. 
2.

Most important factors affecting the portfolio investment in UAE no copy from the internet3 pages

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