The future looks brighter - 28th Sep 2011

Gulf markets should end the year on a more positive note as the MENA region’s political situation stabilises, according to observers.
The relative transparency of Gulf markets, coupled with government spending programmes, high oil prices, a more steady housing market, and the control of inflation, will all contribute to increased investor confidence in the region. In addition, banks in the region remain in a healthy state and companies are now better prepared for difficult times.
Investors are expected to become less risk averse, but potentially more interested in choosing fund managers with the ability to demonstrate their edge.
While the situation will improve, in the long term, challenges remain. These include low liquidity, poor corporate governance, underdeveloped distribution channels and foreign ownership restrictions, according to observers.
Poor human resources and low institutional participation in the asset management industry are also issues that if addressed, could provide a boost the industry.

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