Kuwait Financial Centre “Markaz” concluded its recent webinar titled ‘GCC Markets: An Attractive EM Allocation Play,’ presented by Mr. M. R. Raghu – CEO, Marmore MENA Intelligence, the research arm of Markaz. The webinar brought out key attributes that differentiate GCC from other Emerging Markets (EMs) and highlighted how they stand out as an attractive investment opportunity.
The webinar stated that GCC Capital Markets have taken large strides in the past decade to meet international standards and support the diversification efforts of their respective economies. The focus of foreign investors on GCC equity markets has gradually risen in recent times as the GCC region holds unique characteristics that are quite different compared to a typical Emerging Market. Strong Economy, low debt, lack of currency risk, and high reserves are some attributes that help them stand out. GCC equities are also generally considered a strong oil play by certain fund managers due to their economic growth being largely driven by oil revenues.
The weightage of GCC stocks in the MSCI EM index witnessed a steep rise from 0.85% at the end of 2014 to 7.3% at the end of April 2023. The favorable economic and business environment in the GCC is likely to increase the weightage of GCC companies within the MSCI EM index in the years ahead. GCC markets have a strong pipeline of IPOs, mainly focusing on State-owned entities. These companies are likely to expand the presence of GCC companies forming a part of the MSCI EM index.
The webinar concluded with the key takeaway that GCC markets present an interesting island of opportunities within the Emerging market space that can be tapped by fund managers.
Markaz concludes webinar on how GCC equities are evolving as an important opportunity within Emerging Markets
30/05/2023