The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Best managed companies in the Middle East 2010: After Dubai, funds focus on consumer demand

Firms exposed to the Gulf’s more speculative property markets are no longer attractive. Top stock picks in the Middle East revolve around the large and youthful consumer populations of Egypt and Saudi Arabia. Good corporate governance is another key to foreign investment. Dominic O’Neill reports.

Best Managed Companies in the Middle East 2010: Results
Methodology

DAIRY FARMS IN one of the world’s most arid countries might not be expected to be particularly successful. But Saudi dairy firm Al Marai is a resounding favourite among fund managers.

Al Marai’s cows live in large air-conditioned farms, and yields are high. In the first half of this year, Al Marai’s revenues were up 20% on the same period last year.

Fund managers are particularly attracted to Al Marai because, unlike some firms in the region, it is highly transparent (it has won awards for its investor relations). It also wins a higher score than any other company in the Euromoney poll of best-managed companies in the Middle East.

Hesham Abo Jamee, head of asset management at Saudi Arabia’s Bakheet Investment Group, warns that Al Marai might be over-valued, and prefers to wait a few years to see its returns from its new projects. But for fund managers outside Saudi Arabia, Al Marai fits into a preferred theme: consumer-related businesses in countries with large, young, and increasingly rich populations.

One of the reasons why equity fund managers have gone off firms in Middle Eastern states such as the United Arab Emirates is because, unlike in Saudi Arabia, migrant workers dominate the population there.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree