United Arab Emirates:
CFA Institute, the global association of investment professionals, has published its annual Middle East and North Africa Market Sentiment Survey ahead of its fourth annual Middle East Investment Conference (MEIC), hosted this year in Dubai.
Based on feedback from nearly 200 regionally-based investment professionals from eleven countries, it highlights key findings on a broad range of economic, investment and employment trends currently facing the region.
In summarizing the research, Mr. Nitin Mehta, CFA, Managing Director, EMEA, CFA Institute, said, “Investment professionals in the MENA region are perhaps less optimistic than their colleagues in other markets elsewhere in the world. But this obscures some real disparities. The GCC is seeing increasing confidence and a return to form following the global financial crisis at a time when the rest of the region is still struggling with the impact of the Arab Spring.”
“However, despite this economic diversity, the challenge remains almost the same. Renewed growth and sustained prosperity in all markets across MENA will be dependent upon the region’s ability to nurture investor trust and confidence. Beyond the obvious need for political stability, this will require greater transparency and improved corporate governance practices, together with the promotion of international best practice, investor education, the development and enforcement of stronger trading rules, alongside sufficient deterrent mechanisms,” he added.
Elaborating on these findings Yacoub Nuseibeh, CFA, President of CFA Society Emirates, said, “Almost half of respondents think that the Arab Spring will continue to have a negative economic impact on the broader region over the next five years. However there is increased confidence in theGCC with Saudi Arabia, Qatar and the UAE expecting the strongest growth in 2013.”
“However, despite this economic diversity, the challenge remains almost the same. Renewed growth and sustained prosperity in all markets across MENA will be dependent upon the region’s ability to nurture investor trust and confidence. Beyond the obvious need for political stability, this will require greater transparency and improved corporate governance practices, together with the promotion of international best practice, investor education, the development and enforcement of stronger trading rules, alongside sufficient deterrent mechanisms,” he added.
Elaborating on these findings Yacoub Nuseibeh, CFA, President of CFA Society Emirates, said, “Almost half of respondents think that the Arab Spring will continue to have a negative economic impact on the broader region over the next five years. However there is increased confidence in theGCC with Saudi Arabia, Qatar and the UAE expecting the strongest growth in 2013.”
On the markets, one quarter of respondents think equities generally will be the most undervalued asset over the next twelve months, followed by real estate and commodities. Regarding employment growth, respondents believe that the MENA financial services sector will see growth in private equity, real estate, commercial banking and asset management, amongst others.
Mr Nuseibeh concluded, “Feedback also suggests that freedom of labour and capital across the region are seen by our colleagues as the biggest factors to help stimulate investment, followed by regulatory alignment across the MENA region. Creating an economic trading union, a single capital market and a single currency were identified as the other major factors.”
