Investor confidence in GCC rises in Sept – Shuaa

According Dubai-based investment bank
Shuaa Capital

’s monthly GCC Investor Sentiment Report, confidence among international and regional investors towards the Gulf region rose one point to 127.3.

The report collated results from 51 members of the investment community last month who were asked about everything from the current economic conditions, to stock prices and whether they would invest in the GCC within six months.

Bahrain and Kuwait led the overall rise in the index with big gains in investor confidence this month. However they still remain the two weakest perceived economies in the GCC, with over half of investors downbeat on the outlook for Kuwait and a third negative on Bahrain.

Oliver Schutzmann, chief communications officer of
Shuaa Capital

and author of the report said: “Investor sentiment towards the region has been consistently improving over the past six months with only one month-on-month drop since April 2009.”

Investors were most positive on the Qatar and Saudi Arabia economy. Some 51 percent of respondents thought that Qatar’s economy was robust and 41.2 percent said the economy was favourable in Saudi, the world’s largest oil producer.

Nearly a third of respondents held a negative view about the UAE, but close to 60 percent thought that economic conditions would improve there over the next six months.

The Abu Dhabi Stock Exchange was considered the most undervalued.

Confidence for GCC real estate – the worst performing industry out of the eight that were surveyed – was poor.

Some 41.2 percent of investors were gloomy on the sector, which has bared the brunt of the downturn in the Gulf.

Exactly 51 percent of those surveyed thought oil and gold prices would rise over the next six months. Both commodities have rallied recently as investors hedge against inflation and a weakening US dollar.

45.1 percent thought the US dollar would fall further in the next six months.