This will lead to improved capital inflows into the region, both direct and portfolio, so further improving liquidity. Markets can then enter a virtuous circle of becoming more attractive to portfolio investors because of improved liquidity, transparency and greater coverage by analysts, which will fuel further inflows. The answer to the original question of whether Gulf equity markets are the next emerging market on the world stage largely depends on how far Gulf countries will open up their economies and markets, privatise their enterprises and regulate their stockmarkets. We are already seeing some progress towards this. Recent remarks from Saudi Arabia, Qatar, Abu Dhabi and others about opening their markets to foreign participation, and talk of plans to create a regional stockmarket, the objective being to increase liquidity, may yet prove significant in an international investment context.
Investors are always keen to find new and interesting opportunities.
Changes under way in the Gulf will attract attention. Furthermore, when taking into consideration the level of foreign and local portfolio and direct interest generated by other investment opportunities elsewhere in the region, such as in Egypt, one can only assume that the Gulf has all the makings of an interesting and exciting investment destination. Tim Jackson is regional director of Baring Asset Management. The most comprehensive survey of executive salaries in the region. The latest ranking of the Gulf's best business cities, based on their economic weight and their importance as centres of international business.