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Half of institutional
investors in the UK plan to increase their investment exposure to
the Gulf region over the next three years, according to Lyxor Asset
Management (Lyxor).
The research by Lyxor questioned 20 of the top 100 pension funds
in the UK in July 2008, and 70 per cent believe the regions of Kuwait
and the Gulf are attractive investments with potential for strong
future growth. Economic and political stability featured heavily
in decisions, and current growth strength in the region influenced
15 per cent of choices.
45 per cent of institutional investors believe that over the next
five years stock market returns in the Gulf region will be excellent
or good, and only one in ten say returns will be poor.
Daniel Draper, global head of Lyxor ETF, said: “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.
For example, while booming oil and gas prices have boosted Kuwait’s
economy this has financed development into other areas, such as
banking, telecommunications and construction sectors, all helping
to improve the diversification profile of the fast-growing Kuwaiti
economy.”
- Pensions Age
August 2008
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