As much as three-quarters (75 percent) of Saudi respondents representing sovereign funds, central banks, asset managers and pension funds in a survey expect more investment from outside the MENA region will increase in the locally-domiciled funds over the next five years.
The survey ‘2018 Middle East and North Africa Regional Survey’ by US-based State Street of 306 investment professionals in the MENA region during August 2018, capturing respondents’ views on market trends and evolving investment strategies, found strong optimism for economic and capital markets growth over the next five years.
The survey covering 11 countries, with about half of responses coming from Saudi Arabia and the United Arab Emirates, also found that a majority of investors in the region are entering new asset classes, with 32 percent of Saudi respondents said they were increasing their use of exchange traded funds (ETFs).
When it comes to identifying the opportunities and threats to Saudi Arabia’s capital markets, monetary policy, economic growth outlook, and fiscal policy are seen as tailwinds by Saudi respondents, while regulatory initiatives, geopolitical outlook, and economic growth outlook are identified as concerns, the survey noted.
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