Riyadh, (Business News Report)| The largest asset management company in Europe has confirmed that its cash-rich Gulf clients are looking to invest beyond the US markets.
The focus has become more on stocks in developing countries such as China and India.
Institutional investors in the region are looking “to raise portfolio diversification and really gain exposure to these country-specific stories and take advantage of internal demand growth,” Nesreen Srouji, Amundi SA’s chief executive officer in the Middle East, said Monday in an interview with Bloomberg Television.
She added that some regional sovereign wealth funds are also taking large positions in exchange-traded funds, targeting players controlling every sector including infrastructure and real estate.
Many customers are also looking into sustainability investments, or ESGs, according to Bloomberg.
In a related context, Khaled Sefri, CEO of the Emirates Investment Bank, said that cash-rich Gulf clients, who own two million dollars or more, are optimistic about their investments in the Gulf countries, compared to global investments in other countries of the region and the world.
In an interview with one of the press sources, Safri pointed out the greater impact of the rise in oil prices on the psychology of investors and their view of achieving returns in the medium and long term in the GCC region.
He explained that the increasing optimism among investors about the economic environment in the Gulf is the main result of a survey conducted by the Bank for high net worth investors.
Investors expected the current economic situation to improve at the global and regional levels and to continue its positive path over the next five years.
It is worth noting, that the rise in global stocks, the rise in oil prices and with the increase of sovereign investors around the world led to the wealth fund industry’s assets to exceed $10 trillion last year for the first time.
Some are increasingly focusing toward Asia rather than the US, according to data provider Global SWF. The Saudi wealth fund applied for a QFII license in China late last year.
Meanwhile, Amundi’s Gulf clients grew in 2021 as they became more active in investing in stock markets around the world, according to Srouji. She added that the rise in oil prices increases investment appetite with the availability of liquidity.
