The company “Cantor Fitzgerald” has recommended purchasing shares of Emirati banks despite the ongoing conflicts in the Middle East, labeling these shares as “low-risk and high-return” investments.
Analyst Kato Mukuro advised investors to “increase the allocation” of shares from seven banks within their portfolios, citing the UAE’s commitment to establishing itself as a safe haven.
In a research note directed at clients, Mukuro acknowledged that the intensification of regional conflicts poses significant risks and market volatility in the short term. However, he emphasized that the fundamental investment thesis for the shares under review is based on the long-term economic factors that support such investments. His favored stocks include National Bank of Ras Al Khaimah, First Abu Dhabi Bank, and Abu Dhabi Islamic Bank. He projected a target price of 18.40 dirhams for the National Bank of Ras Al Khaimah’s stock, which is nearly double the estimates of other brokerage firms tracked by Bloomberg, suggesting an upside potential of over 80%.