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Over half of MENA investors confident in markets in second half of year

Over half of MENA investors confident in markets in second half of year

Over half of investors in the Middle East and North Africa region surveyed said they were confident market conditions were improving, according to financial solutions firm Salt Fund Placement. Fifty-six percent said they were optimistic about market conditions in the second half of 2021, with the majority citing sustainable economic development and Covid-19 recovery as

Over half of investors in the Middle East and North Africa region surveyed said they were confident market conditions were improving, according to financial solutions firm Salt Fund Placement.

Fifty-six percent said they were optimistic about market conditions in the second half of 2021, with the majority citing sustainable economic development and Covid-19 recovery as reasons for being bullish. Others said ongoing government stimulus and the low-interest-rate environment fuelled their optimism. Thirty-eight percent said they had a neutral outlook, with 6 percent saying they were pessimistic.

A reported overvalued market and hyperinflation drove bearish investor sentiment, with the ongoing pandemic, high government and private sector debt and risk of over government stimulus also cited.

How the pandemic fuelled the rise of retail investors

Legacy of economic uncertainty, increasing popularity of e-trading platforms and a changing perception of risk have all played a role, says Lex Webster, co-CEO of Exinity Group

In the first half of 2021, industrials, financials, materials, information technology, and healthcare were the top five sectors to receive investment, with 36 percent of investments made over $50 million. Twenty-one percent of investments made were between $25-$50m and another 21 percent were between $10-$25m. Seven percent of investments fell between $5-$10m, and 14 percent were up to $5m.

In the last six months of the year, the same five sectors are expected to perform well, with most investments made above $50m.

Of the investments made, 35 percent were conventional, and another 35 percent were shariah-compliant and 20 percent were environmental and social governance-related.

Investors from the MENA primarily invested in US markets, capturing 15 percent of investments, with emerging markets and Europe each claiming 13 percent. The UAE and developed markets each claimed 12 percent, Saudi Arabia claimed 8 percent and China captured 6 percent.

In the last six months of 2021, emerging markets and the US are expected to each capture 14 percent of investments, while developed markets, Europe and the UAE will likely claim 12 percent each. Saudi Arabia is predicted to attract 10 percent, while China is expected to take around 8 percent, and Qatar, 6 percent.

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