MENA fund managers increase investments in Egypt
Saturday, 05 25 2019, Category: Economy, Country: Egypt
Middle Eastern funds plan to increase their investments in Egypt and the United Arab Emirates over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Six of the 11 fund managers polled said they would increase their investments in Egypt.
“We see UAE and Egypt being structurally the most attractive markets in MENA,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
The Egyptian market is up 4.94 per cent this year, outperforming other markets in the Middle East region, including Dubai, Abu Dhabi, and Qatar.
Aiming to shore up investor confidence, Egypt has been implementing economic reforms as part of a three-year, $12bn agreement with the International Monetary Fund in November 2016. The reforms included a value-added tax, cuts to energy subsidies and a steep currency devaluation.
Economists polled by Reuters last month expected Egypt’s economy to grow 5.5 per cent in the current 2018/2019 fiscal year.
“Egypt is undoubtedly the best growth story in MENA,” Bhandari said. “The reform programme is on track and once the inflationary pressures ease, we expect a pick up in the capex cycle.”
Fifty-five per cent of fund mangers said they would increase investments in the UAE, continuing a trend from previous months.
Source: Gulf Business