Qatar Financial Centre Authority survey predicts good year for MENA equities (By IFN)

Qatar Financial Centre Authority survey predicts good year for MENA equities

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GLOBAL: The Qatar Financial Centre Authority (QFCA)’s annual survey on the Middle East and North Africa market, the ‘MENA Asset Management Barometer’, predicts 2013 to be a bullish year for equities in the GCC market; particularly in Saudi Arabia, Qatar and the UAE. According to the survey, equities are set to return between 10-15% this year, boosted by strong internal investment and consumption dynamics; outperforming the rest of the region. The survey, which involved over 40 companies; including Al Rajhi Capital, Bank of London and the Middle East, NCB Capital, Goldman Sachs, HSBC and SHUAA Capital, said that GCC equities are currently trading at an average 6% discount compared to other emerging markets; and that asset managers view this trend as an opportunity to improve liquidity and “inject fresh money into the market”. Asset managers in the region are also said to be planning to launch a batch of new equity, fixed-income and Shariah compliant strategies this year to meet the growing demand from investors. Property funds and alternative products are also said to be gaining popularity amongst MENA investors. In terms of new products to be launched this year, equities rated the highest amongst asset managers at 47.4%, followed by Shariah compliant products at 42.1%, and fixed income at 39.5%. Hedge funds and infrastructure funds ranked the lowest at 2.6% each. Investor interest in Sukuk is also expected to increase this year, while public and private debt are growing in popularity amongst MENA investors as a preferred investment vehicle. And although the market is expected to see a spate of new equity-type product launches this year, fixed-income products are expected to continue to dominate the 2013 investment space.