[2007-08-23]  NBAD is shifting assets to Saudi
National Bank of Abu Dhabi (NBAD), the largest asset manager in the UAE, said it was shifting funds to Saudi Arabia and Abu Dhabi, where infrastructure spending is likely to boost profits and shares.

The Abu Dhabi government-controlled bank, which manages about $1.5 billion of assets, has cut its exposure to Kuwait, Qatar and Dubai, partly to raise funds to invest in its home city and in the world's largest oil exporter, its asset management chief investment officer said.

"We are starting to see some positive signs in Saudi Arabia," Nazem Al Kudsi said.

"The market has been a laggard, so we see upside."

Saudi Arabia's main stock index until this week was the only Gulf stock market to be in negative territory for the year to date. But thanks to gains over the past few trading sessions, it is now up 1.8 per cent for this year so far.

Dubai, by contrast, has lost all its this year's gains after five consecutive trading days of declines to be down 1.5pc so far this year.

A year ago, about 95pc of the assets NBAD managed were in markets in the UAE, of which about 60pc were invested in Dubai, Kudsi said.

The bank started shifting its assets in June. Now the UAE's overall share is 85pc, with 60pc of that invested in Abu Dhabi, Kudsi said. Saudi Arabia accounts for about 5pc of the total. "The UAE is the most open economy in the region, the least dependent on oil and where the reform process is most advanced," Kudsi said.

Source: Copyright © 2007 Gulf Daily