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Global investors see compelling case for GCC investment

Reforms have led to the inclusion of key regional equity markets in benchmark indices

Investors from around the world see reforms across the Middle East and the strong development of regional capital markets have made a compelling case for investment here, according to Nabeel Albloushi, HSBC’s regional head of markets & securities services for the Middle East North Africa & Türkiye (Menat) region.

Nabeel was speaking at HSBC’s Menat Future Forum, the region’s largest private gathering of international investors, regulators, exchanges and market participants which was held in Dubai.

“The pace of reforms in this region has been phenomenal and stakeholders in each market have a powerful and persuasive story to tell global investors,” Nabeel added. “The region has momentum with strong growth, healthy public finances, strong demographics and lower inflation than many other parts of the world.”

Billions of dollars of fund inflows into the region’s asset markets from around the world have been triggered by a series of reforms to liberalise access for international investors, create new hedging instruments, and increase institutional investor participation.

The reforms have led to the inclusion of key regional equity markets in benchmark indices tracked by major mutual and pension funds, supporting further inflows of long-term capital.

At the event’s opening address, chief executive of the UAE Securities and Commodities Authority, Dr Maryam Buti Al Suwaidi, said: “I believe now the UAE has the right talent pool for the asset management sector to increase its footprint in the country. We are creating policy to encourage and facilitate the establishment and growth of the sector in the UAE while we have all the vital elements in place. This includes simplification of licensing process with substantially reduced timelines”

Key themes to emerge from the forum over the four days include the increased focus on global geopolitics, enhanced regulatory and investment ecosystem, sustainability-linked issuances and the importance of developing common sustainability standards as well as how regulation can successfully oversee the growing role of distributed ledger technology or ‘blockchain’ in finance.