Qatar second most popular investment hub in MENA

ASIF IQBAL

DOHA

QATAR has maintained its second most popular investment destination status in the Middle East and North Africa (MENA) region along with the United Arab Emirates (UAE), while Saudi Arabia continues to take the pole position in a latest survey on investor confidence.

According to the latest quarterly survey of the QFC Authority-FTSE Global Markets MENA Asset Management Survey, investors remain positive about Saudi Arabia. The survey also finds that investors have noted the improving fortunes of the UAE states, and have now brought the emirates on par with Qatar in terms of overall investor sentiment.

“Qatar alone had been the second most popular investment destination in the first quarter survey. Respondents to this latest survey also think that future investments in Egypt will be dependent on the country coming to terms with the IMF,” the survey said.

It said political deadlock in Kuwait has also had a negative effect on investor approaches to the country.

This third survey was conducted between July 25 and September 20 this year. Some 393 firms were approached for information of which 84 responded, either by phone, fax or email.

“Although quarter on quarter trends in asset allocation can obscure longer term structural changes in geographic preferences of investment firms, because the MENA region has been subject to socio-political disruption through 2011-2012, we expected more dynamism among investors in terms of geographic asset allocation,” the survey said.

The survey found that there is also more dynamism in asset allocation among those funds with approximately 80 percent of their portfolio in the domestic market. They exhibit a marked willingness to shift capital when necessary. In this regard, the survey is an important bellwether of the shifts in investor thinking about political and market risk.

Commenting on the survey, QFC Authority CEO Shashank Srivastava said, “Despite the global financial crisis, a diversified and increasingly sophisticated asset management industry has emerged in the GCC over the past decade.” He said that Qatar was playing a central role in the development of this industry.

“Qatar, which is the fastest growing economy of a fastgrowing region, has a savings rate of approximately twice the global average. The country has one of the highest proportions of high net worth individuals (HNWIs) in the world.”