Gulf investor confidence hits seven-month high

Shuaa Capital GCC Investor Sentiment Index rises nine points to 119, only Bahrain sees negative trend
Gulf investor confidence hits seven-month high
The Dubai World deal has bolstered confidence in the GCC, said Sameer Al Ansari, CEO, Shuaa Capital
By Shane McGinley
Tue 19 Oct 2010 11:53 AM

Investor sentiment in the Gulf is at a seven-month high as confidence creeps back to the markets following the Dubai World restructuring deal, the latest report from Shuaa Capital has found.

The Shuaa Capital GCC Investor Sentiment Index, which surveyed the opinions of
investors in six GCC countries, rose nine points to 119, its highest point since March 2010.

"The
Dubai World restructuring agreement marked possibly the most significant moment
for regional economies since November last year. Investors have stood by for a
clearer outcome surrounding the restructuring progress,” said Sameer Al Ansari,
CEO of Shuaa Capital.

The
poll, which was based on a study carried out in September, is based on a range of 0 to
200. A number greater than 100 represented positive sentiment, while a number
lower than 100 represented negative sentiment.

Kuwait
led the field and registered the largest increase, rising fifteen points to
114. A close second was the UAE, up thirteen points to 117.

Saudi
Arabia continued to demonstrate the highest level of investor confidence, with
an index score of 133 points. Qatar scored 130 points while Oman rested on 120 points.

Bahrain, however, dropped five index points to 106, making the kingdom the only Gulf state to register a
negative trend.

“As this latest report shows,
investor confidence is slowly returning and we expect it to continue over the
course of the next few months," said Al Ansari.

The index also found that investors
believed GCC stock exchanges were undervalued, particularly the Abu Dhabi Stock
Exchange and the Dubai Financial Market.

When
asked which sectors investors believed would register increased profitability,
transportation and logistics was named by respondents as the most lucrative sector, with 47.4
percent forecasting profit increases. Other sectors viewed
positively were consumer and retail and pharmaceuticals.

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