21 May 2013
Muscat: The United Arab Emirates (UAE) is the key beneficiary of private capital flow into the Gulf Cooperation Council (GCC) region, according to the fourth annual Invesco Middle East Asset Management Study1, with capital from emerging markets, most notably from India, Russia and China, overtaking those from developed markets.
The in-depth study, which looks at the evolving asset management industry in the GCC, shows that participants estimate that just under half (43 per cent) of private capital flow entering the United Arab Emirates is from emerging markets including 15 per cent from India, 10 per cent from Russia, and 7.0 per cent from China. Just 13 per cent of private capital is flowing in from across all developed markets including UK, Continental Europe and North America.
Furthermore, just over a third (35 per cent) of capital into the UAE is actually coming from the wider Middle East and North Africa (Mena) region and 9.0 per cent from the other GCC countries.
While capital is flowing into the UAE, overall capital in remaining GCC markets including Bahrain, Oman, Kuwait and Qatar appears to be exiting home markets, making the UAE the key
focus for capital flowing into the region.
This inflow trend is supported by national statistics that highlight a 9.0 per cent net increase in UAE bank deposits during 2012, and a 17 per cent annualised growth rate in United Arab Emirates property prices over the same period, both indicators of increasing capital flow.
Muscat: The United Arab Emirates (UAE) is the key beneficiary of private capital flow into the Gulf Cooperation Council (GCC) region, according to the fourth annual Invesco Middle East Asset Management Study1, with capital from emerging markets, most notably from India, Russia and China, overtaking those from developed markets.
The in-depth study, which looks at the evolving asset management industry in the GCC, shows that participants estimate that just under half (43 per cent) of private capital flow entering the United Arab Emirates is from emerging markets including 15 per cent from India, 10 per cent from Russia, and 7.0 per cent from China. Just 13 per cent of private capital is flowing in from across all developed markets including UK, Continental Europe and North America.
Furthermore, just over a third (35 per cent) of capital into the UAE is actually coming from the wider Middle East and North Africa (Mena) region and 9.0 per cent from the other GCC countries.
While capital is flowing into the UAE, overall capital in remaining GCC markets including Bahrain, Oman, Kuwait and Qatar appears to be exiting home markets, making the UAE the key
focus for capital flowing into the region.
This inflow trend is supported by national statistics that highlight a 9.0 per cent net increase in UAE bank deposits during 2012, and a 17 per cent annualised growth rate in United Arab Emirates property prices over the same period, both indicators of increasing capital flow.
© Times of Oman 2013
