A top financial analyst asserted on Tuesday that the Gulf markets might find themselves on the Morgan Stanley Capital International (MSCI) Emerging Market Index within the next few years.
First Vice President and Chief Global Emerging Markets Equity Strategist of Merrill Lynch, Michael J.S. Hartnett, made the comments in Dubai on Tuesday, saying that in will take only a few years before these markets potentially reach the list of top global emerging markets.
“Some of the GCC markets such as Saudi Arabia and UAE have been attracting huge international investor attention during the past two years. The issues such as entry barriers, transparency and regulatory issues need to be addressed prior to the entry of international investors,” Hartnett said, according to <i>Khaleej Times</i>.
Harnett added that there is no evidence that investors are withdrawing from major global markets or the UAE.
“There have been a significant increase in investments closer home primarily because of the huge growth in liquidity. With significant growth in asset prices and valuations of regional equity markets, Gulf investors need to diversify their portfolios,” he said.
Harnett also said that the region's markets should remain bullish this year, but he warned that some might be prone to ‘bubbles’ due to excessive valuations and high equity price volatility.