Marmore MENA Intelligence, wholly owned subsidiary of Kuwait Financial Centre “Markaz,” concluded its participation in the MENA Investment Congress, which took place in Abu Dhabi on Thursday, November 24th. Marmore’s participation in the conference is a crucial step in utilizing objective analysis of global events that would allow Markaz to make better-informed, more effective business decisions. Organized by the CFA Society Emirates in association with Abu Dhabi Global Market (ADGM), this year’s MENA Investment Congress united more than 300 global attendees to explore new investment strategies, analyse emerging fintech solutions and discuss the next frontiers of the regional investment landscape.
M.R. Raghu, Chief Executive Officer of Marmore MENA Intelligence, participated in a roundtable discussion at the congress entitled “MENA Outlook 2023” articulating his thoughts about the evolution of GCC stock markets, their role in supporting economic diversification and development and opportunities to bring foreign investment into the region via fixed income, equity and alternative investments. In the roundtable moderated by Hussein Sayed, CFA and anchor at CNBC Arabia, Raghu participated in the discussion alongside senior representatives from Nomura Asset Management and St. Gotthard Fund Management AG.
During the discussion, Mr. Raghu cited several poignant figures that projected a positive outlook for regional stock markets, including 27 IPOs in the GCC in 2022, raising a total of USD 14.5 billion, and upwards of USD 7 billion of foreign capital invested into Middle Eastern stocks in March 2022, according to Franklin Templeton. Raghu explained the difference between attracting family business and State owned enterprises into the IPO fold. He said that later is easier and is a low hanging fruit for swift depth of the market.
Mr. Raghu also identified significant geopolitical events and macroeconomic shifts that would continue to have an impact on GCC markets. The Russia-Ukraine conflict, monetary tightening policies, high inflation rates and growing concerns regarding recessions were all referred to as specific causes for global market changes. Within GCC, countries are continuing to transition from oil-reliant economies. In consideration of high oil prices, the macro outlook for the GCC remains strong measured by GPD, fiscal balance and current account balance. Raghu opined that private sector will play a key role in this transition.
Raghu noted that GCC capital markets have significantly evolved over the years leading to increased listings, liquidity, products and valuation. Also he noted strides made by Capital market authorities in the region launching various reforms that is likely to attract foreign inflows. Raghu said that GCC’s share in the MSCI EM index is likely to increase in the coming years due to these factors.
Marmore, which was established as a subsidiary of Markaz in 2010, continues to grow as one of the most reputable strategic intelligence and market advisory organizations in the MENA region. By leveraging the analytical aspect of global events, Markaz aims to leverage Marmore’s research-oriented findings to make informed decisions and offer best-in-class investment opportunities to its clientele.