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Posted On: 23 July 2013 11:59 am
Updated On: 12 November 2020 02:13 pm

Qatar’s Upgraded ‘Emerging Market Status’ Bolsters Asset Management

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The MSCI’s decision to elevate Qatar from Frontier Market to Emerging Market status will significantly benefit Asset Management companies. A survey, jointly conducted by strategic research company “Insight Discovery” and Zawya in June/July 2013, shows that the global Index compiler’s decision to enhance Qatar Indices to its universe of Emerging Markets is a very positive development. Almost all of the 141 investors and other market participants surveyed think that flows of funds to Qatar and UAE (another market elevated along with Qatar) will increase. However, there is a diversity of views as to which asset management companies will benefit the most from the elevation. Some 58 percent of survey respondents believe that the main beneficiaries will be international asset management companies that have a local presence in the GCC countries and which offer regional funds. Another 33 percent identify local/regional asset management companies. The remaining 9 percent think that the main winners will be international asset management companies which do not have a regional presence but which can offer regional funds. Substantial numbers of respondents expect both international and local/regional asset management companies to benefit from the elevation of the MSCI UAE and Qatar Indices. Taking a three-to-five year view, almost half of respondents think that the elevation of the Indices could result in an asset price bubble somewhere in the GCC region. Over one third of survey respondents identify each of Kuwait and Oman as being the GCC markets that are most likely to be the next that are elevated by MSCI to Emerging Markets status. Over 80 percent of survey respondents think that the decision in relation to Qatar and UAE will accelerate the reclassification of Saudi Arabia’s Tadawful market. The asset management companies mentioned by respondents as benefitting the most from this development included a wide array of local and regional firms. In total, over 30 companies were mentioned as being significant beneficiaries. A total of 141 professionals working within Mena participated in the survey. 60 percent of the respondents were based in the UAE. The other respondents are widely dispersed across the Mena region, while five percent are based in each of Qatar and Kuwait and 8 percent in Saudi Arabia. Source:Qatar Chronicle