16/01/2017 05:40 AST

Emirates NBD Asset Management has identified Saudi Arabian equities as an area of strategic focus due to the significant growth potential. Through its MENA Equity funds, Emirates NBD Asset Management already provides exposure to the Kingdom, offering global expertise to the Saudi market by virtue of its established track record of investing in that market.

Through its MENA funds, Emirates NBD Asset Management is targeting medium to long-term capital growth in the Saudi market. Furthermore, the firm is actively seeking additional opportunities and will drive the development of new products specifically tailored for the Saudi market.

Yong Wei Lee, Head of Equities, Emirates NBD Asset management, said: “The potential for investment in Saudi Arabia over the coming years is huge. Government initiatives and its Vision 2030, in particular, indicate a clear appetite for foreign investment and an effort to diversify the economy: in itself an opportunity for Emirates NBD Asset Management and our partners. An upgrade to the MSCI Emerging Market Index is a clear goal of the stock market regulator, which would instantly boost Saudi Arabia’s potential. This combined with the stabilization – or possible increase – in oil prices from 2017 onwards, all contribute to a sense of optimism and improved investor confidence.”

Potential growth in Saudi Arabia is partly the result of government initiatives to stimulate the market

for the years ahead. In response to declining oil prices, the Saudi government launched its Vision 2030 plan to diversify the economy, increase foreign investment – highlighting clear opportunities for Emirates NBD Asset Management – and rationalize fuel subsidies. As a result, the government expects to lower the breakeven oil price for fiscal budgets down to $60 – 65 per barrel possibly as early as 2020.

In the long term, cost efficiency measures introduced by the Government will also result in a sustainable growth profile to the benefit of the country.

Saudi Arabia currently ranks as the 22nd largest stock market globally by capitalization – similar to other large emerging markets – and the potential inclusion in the MSCI Emerging Market Index are other reasons for optimism. The Saudi QFI program is already implemented and a potential upgrade could occur by mid-2017/18. When UAE and Qatar were upgraded to the index these markets appreciated by over 50% 18 months prior to the upgrade, suggesting attractive returns for Saudi Arabia when it enters the index, potentially starting with a 2% weighting.

Tariq Bin Hendi, CEO at Emirates NBD Asset Management, said: “The focus on Saudi Arabia is also part of Emirates NBD Asset Management’s expansion of its global offering, particularly across the Emerging Markets. These markets offer institutions many opportunities for strong risk-adjusted returns, as has been evident through our historical exposure to the Saudi Arabian market. As experts in the region and by building upon our existing MENA Equity funds, we look forward to developing new products for this hugely exciting market, particularly through equities, and delivering attractive results for investors.”

Saudi Arabia is just one of a number of emerging market opportunities that Emirates NBD Asset Management are confident about.


Saudi Gazette

Ticker Price Volume
SABIC 114.77 5,915,941
SAMBA 26.98 1,138,683

TASI 7,871.67 71.90 (0.92%)

Market
P/E
Price/BookValue
Dividend Yield (%)
Performance
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
SABIC 114.77 0.02 (0.01%)
STC 83.41 2.09 (2.57%)
NCB 64.98 0.35 (0.54%)
RJHI 76.03 0.78 (1.03%)
SECO 20.62 0.12 (0.58%)
Foreign investors pile into Saudi Arabia in March amid kingdom's FTSE upgrade

05/04/2018

Foreign investors bought $1.18 billion in Middle East and North African equities in March, especially Saudi ones amid the kingdom’s upgrade to emerging market status by FTSE Russell, according to a r

The National

Muscat bourse gains lifted by activity in financial shares

05/04/2018

Buying activity in financials lifted the MSM30 Index to 4,794.61 points, up 0.41 per cent. The MSM Sharia Index closed at 676.52 points, down 0.08 per cent. Gulf Investment Services was the most acti

Times of Oman

Dubai bourse takes a hit in traded value

05/04/2018

Traded value on the Dubai Financial Market tumbled on Wednesday as global stocks declined amid an intensifying US-China trade war. In Abu Dhabi, banking shares surged ahead of first quarter results s

Gulf News

Financial blue chips drive Muscat bourse recovery

04/04/2018

Driven by financial blue chips, the MSM30 Index continued its recovery to close at 4,775.27 points, a gain of 0.53 per cent. The MSM Sharia Index ended at 677.06 points, down 0.07 per cent. HSBC Bank

Times of Oman

Emaar Properties stock hits new one-year low

04/04/2018

Emaar Properties shares extended losses for another session on Tuesday, to hit their lowest level in a year, as selling continued on the wider Dubai gauge. Emaar Properties fell to a low of Dh5.58, b

Gulf News