A flood of petrodollars into the turbo-charged Qatari and UAE economies is driving a bumper year for equity listings in the Middle East and North Africa (MENA) region, resulting in the highest levels of equity fundraising since 2008.
Although the total value raised in the region – $3.1bn across 24 deals, according to figures compiled by data provider Dealogic – is fairly small in the scheme of global equities, it marks the busiest January to mid-May period in the region for six years. Read more
By Julie Dickson of Ashmore
There was no shortage of concerns about emerging markets last year. Investors fretted about US Fed tapering, China’s growth, tension escalating in Syria, and Turkey and Egypt facing social and often violent unrest. Global Emerging Markets investors reacted and diverted funds to the developed markets, leaving EM stocks to post a dismal -2.6% return for the year. But investors in Middle East equities saw things differently and enjoyed returns of 30.6% (MSCI GCC US$ Net), outpacing Developed and Emerging Markets by a wide margin.
Why? How? Read more
Political unrest has caused divergent company performance in the region, writes Camilla Hall. Bahraini company earnings dropped the most in the Gulf in the third quarter while companies in the United Arab Emirates outperformed their regional peers. Read more