By Andrei Skvarsky
Investors in the Gulf countries are looking to significantly increase their exposure to emerging markets, according to a survey by UK investment company Invesco Perpetual.
Some 82% of respondents forecast they would invest in emerging markets over the next three to five years. This compared to just 30% for North America, 14% for Europe and 8% for Japan.
Invesco said Gulf investors were shunning developed markets because they expected emerging markets to yield higher returns.
Nick Tolchard, head of Invesco Middle East, said the region was characterised by diversity in acces to products. He said: “Certain markets, such as Saudi Arabia, have restricted access to international investments whereas others, such as the UAE, are dominated by offshore life wrappers with large international fund ranges.”
On the institutional side, Tolchard said sovereign funds prefer private equity and hedge funds while wholsale investor usually go for mainstream equities and bonds.
