Major Influences on the Middle East’s Capital Markets in 2024
2 min
As inflation challenges global economies and the threat of recession appears over many key markets, the Middle East stands out as a sign of stability and growth. The region is distinguishing itself as a center for stability, innovation, and capital market opportunities.
The entrepreneurial landscape in the Middle East is thriving, with its economies catching the eye of both local and international private investors, thanks to a blend of dynamic factors. The youthful, tech-forward population, encouraging government policies towards private investment and startups, and an increasing interest in risk-managed returns are driving a notable transformation. This shift is drawing fresh investment, spotlighting the region’s capacity for growth and innovation.
The environment in the Middle East is particularly beneficial to investments in alternative assets. Amid global economic pressures, the Middle East exudes a sense of stability, innovation, and potential, especially in the Arabian Gulf, led by the UAE and Saudi Arabia, which is drawing significant international investment.
The Gulf possesses some of the largest capital reserves worldwide, attracting alternative asset managers. A notable shift towards private markets is observed, especially among the younger generation in large family offices, who exhibit a strong preference for diversified and alternative investments. This shift expands the investor base significantly.
Regulatory reforms across Gulf nations are enhancing the attractiveness of these markets by improving accessibility and transparency, thereby boosting international investor interest and confidence. These countries are aligning their regulations with global standards to facilitate better integration and familiarity, complemented by tax policies favorable to foreign investment.
The Arabian Gulf is emerging as a vibrant hub for tech startups, propelled by governments’ commitments to economic diversification and digital infrastructure investments. This proactive stance, alongside a supportive regulatory environment for venture capital and a rich talent pool, is attracting venture capitalists and angel investors, making it a hotbed for tech innovation and startup growth. The region’s youthful population is eager for technological advancements and innovative solutions, offering a rich landscape for entrepreneurial and investment endeavors.
Institutional investors are increasingly drawn to the Gulf, attracted by its robust economic indicators, evolving capital markets, supportive policies, and strategic location. The Gulf’s geographical positioning as a nexus between Europe, Asia, and Africa opens access to diverse and expanding markets, making it a strategic hub for global trade. This unique global connectivity and potential for future growth mark the Gulf as a compelling focus for smart institutional investors.
As these forces come together, the Middle East, particularly the Arabian Gulf, is becoming an increasingly appealing destination for alternative investments, marked by a unique blend of stability, growth potential, and strategic global positioning.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
2 min
According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
