The Gulf Cooperation Council (GCC) region is set to become the fastest-growing segment of emerging market capital over the next five years, with major North American investors signalling strong appetite for the region’s stocks, according to a new survey released on Tuesday.
The study by InspIR Connect, which surveyed institutions managing $16 trillion in assets, found significant room for increased investment, with 56 per cent of respondents currently underweight GCC stocks compared to MSCI Emerging Markets Index weightings.
Portfolio managers expect the Gulf region to eventually surpass Latin America’s weighting in major indices like MSCI and FTSE, as investors look beyond traditional energy and financial sectors towards infrastructure, consumer markets and healthcare opportunities.
“The GCC is quickly moving from ‘potential’ to ‘reality’,” said Jeff Tewlow, Managing Director of InspIR Connect. “We have never seen a more opportune time for public and private companies of the GCC to engage with foreign investors.”
The survey of 40 North American institutions, which collectively manage about $600 billion in emerging market equity, highlighted improvements in corporate governance over the past decade as a key factor in attracting investment.
The findings highlighted that increased transparency and accessibility would be crucial for driving trading liquidity and market valuations of GCC companies.
The survey results were released ahead of their full presentation at the 2024 MEIRA Annual Conference in Abu Dhabi, the Middle East’s largest investor relations conference.
Follow us on
