Most UK Investors To Invest In Gulf By 2011
Almost half ofinvestors in the U.K. expect to boost their exposure to the Gulf region in the next three years, according to research from Société Générale subsidiary Lyxor Asset Management. Furthermore, none of the respondents said they have no plans to commit to investments in the Gulf region.
Among the reasons Kuwait and the Gulf are appealing investments, 70% of respondents saidthey see strong growth potential in the region and view the region as being strong both economically (30%) and politically (30%). Another 15% cite current growth in the region as a driver for making investments.
About 40% of institutional investors think equity returns in the Gulf area will be good over the next five years and 5% think they will be excellent,while 10% expect poor to nil returns.
“Our research shows that institutional investors are very much aware of the economic progress that has been made in the Gulf region in recent years,” said Global Head of Lyxor ETF Daniel Draper. “For example, while booming oil and gas prices have boosted Kuwait’s economy this hasfinanced development into other areas, such as banking, telecommunications and construction sectors, all helping to improve the diversification profile of the fast-growing Kuwaiti economy.”