Ninety One Plc. says it is buying stocks in the United Arab Emirates as demand grows for investments less exposed to Donald Trump’s trade war, reported by Ninety One. Ninety One said the fund co-managed by Laijawalla and Archie Hart, called the Ninety One Emerging Markets Equity Fund, returned 13 percent last year, better than 95 percent of its peers with performance data.
The emerging markets equity team at the $11 billion-assets-managed firm favors the UAE because it seeks “markets not tied to U.S. tariffs,” said Varun Laijawalla, co-manager of the EM equity portfolio. It has added UAE-listed stocks including property developer Emaar Properties PJSC and lender Abu Dhabi Commercial Bank PJSC, he said.
Talabat Holdings Plc
“The UAE is doing the opposite of what the US is doing, signing trade deals with its partners and opening its borders to immigration,” Laijawalla said in an interview in London last week. “Is it a kind of escape, a place to hide? Yes, absolutely. It has its own unique factors that are not necessarily affected by US policy.” Laijawalla said he has been increasing his exposure to the UAE since November, the month Trump was elected.
In addition to focusing on the UAE’s real estate and banking sectors, another addition to the portfolio earlier this year was food delivery company Talabat Holdings Plc, whose $2 billion initial public offering late last year was the largest in the Middle East and the world’s largest technology listing of 2024. Talabat shares have had a rocky start since the company’s Dubai debut in December, with the shares still trading about 10% below the offering price.
UAE growth
Laijawalla said the firm is 3% overweight in the UAE compared to the benchmark MSCI Emerging Markets index, making it “one of our largest overweights.” UAE stocks are fifth in the benchmark MSCI index outside Asia. The UAE’s growth, driven by immigrants, state-owned companies and a pegged currency, is proving attractive to global money managers at a time when emerging markets are witnessing uncertainty from external factors. British alternative investment manager Cheyne Capital has the country as a top holding in its EMEA hedge fund.
The country also benefits from its distance from Trump’s accusations that the US is being treated unfairly in many trade deals. The U.S. had a $20 billion trade surplus with the UAE in 2023, according to data compiled by Bloomberg, among the top three largest surpluses the U.S. has had with any other country. The MSCI EM index has gained 4.8% this year, outpacing the S&P 500’s 4.1% loss. UAE stocks in Ninety One’s portfolio have lagged the EM benchmark, with Emaar, Talabat and Abu Dhabi Commercial Bank showing smaller gains.