Abu Dhabi, UAE: CFA Society Emirates unveiled the results of the annual Middle East Societies Market Sentiment Survey, a quarterly snapshot of the 2018 outlook for investment management, according to CFA charterholders from the UAE, Bahrain, and Kuwait. Released ahead of the first MENA Investment Congress, hosted by CFA Society Emirates in Abu Dhabi on 22 February 2018, the survey is an indicator of sentiment among investment management professionals in the region.
According to the survey, respondents believe that global and regional investors will continue to keep an eye on two key factors: geopolitical developments in the Middle East and in investment opportunities in Saudi Arabia. Economic diversification, efforts to remove barriers to entry and the positive impact of continued fiscal prudency on liquidity have brought the latter market into sharp focus for regional and international investors alike.
The top five findings from the survey are:
- Respondents indicated that regional equities and venture capital/private equity will be the most attractive asset classes in the Middle East during 2018
- 70% of CFA members said that their organisation was not investing in Artificial Intelligence for internal purposes.
- Improving ease of doing business and continued fiscal prudency from the government to improve liquidity conditions are the top areas of interest for GCC and international investors in regards to Saudi Arabia.
- Greater transparency of investment decisions and accountability through corporate governance is the most important factor for the development of the investment management profession in the region.
- 70% of respondents said that geopolitics is the most significant challenge facing the regional investment industry.
Commenting on the findings, Amer Khansaheb, CFA, president of CFA Society Emirates, said: “The regional investment management industry is entering an era of innovation and transformation, and professionals are required to quickly adapt to changing industry dynamics. Interestingly, most CFA members who participated in our annual survey this year said that their firm was not investing in AI capabilities. This is despite global trends which suggest that there are increasing levels of AI adoption in investment management due to the cost and efficiency benefits which technology affords. The statistics in this survey suggest that the region is bucking the overall trend, and AI will not have significant implications locally in the near-term.”
Mr Khansaheb added: “As our members highlighted in the survey, improving corporate governance is a crucial element in ensuring the sustainable growth of the region’s financial services market since this will put interest the interests of investors first, whilst aiming to generate returns in an ethical and transparent manner. At CFA Society Emirates we are committed to upholding the highest standards of ethics in order to contribute to the development of the regional investment management industry, through greater market transparency and professionalism which increases competitiveness.”
In November 2017, CFA Institute confirmed its intent to open a CFA Institute office in the Middle East, in collaboration with Abu Dhabi Global Market (ADGM). The new office is set to open in Abu Dhabi this year, and will serve the Middle East and North Africa region to advance the CFA Institute mission to lead the investment profession by promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society.
Methodology
An online survey was conducted from 28th January to 15th February 2018. Participants included CFA members across societies in the United Arab Emirates, Kuwait and Bahrain.
About CFA Institute
CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. Our aim is to create an environment where investors’ interests come first, markets function at their best, and economies grow. There are more than 150,000 CFA charterholders worldwide in 165+ countries and territories. CFA Institute has eight offices worldwide and there are 149 local member societies. For more information, visit www.cfainstitute.org or follow us on Twitter at @CFAInstitute and on Facebook.com/CFAInstitute.
About CFA Society Emirates
CFA Society Emirates is the local United Arab Emirates (U.A.E.) member society of CFA Institute, which administers the globally recognized Chartered Financial Analyst® Program. The local society, founded in 2002, was created to serve the growing requirements of investment professionals in U.A.E. for support, continuing education programs and networking opportunities. Our society seeks to fulfil the CFA Institute mission at the local level: to lead the investment profession by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.
Media contacts
For and on behalf of CFA Institute in the GCC and Middle East
FTI Consulting
Neel Bose
Neel.Bose@fticonsulting.com
T: +971 (0)4 4372100
CFA Institute EMEA (London)
Nicole Haroutunian (Europe, Middle East, Africa)
T: + 44 (20) 75330 9550/ 9551
Nicole.Haroutunian@cfainstitute.org
