Investing in the Middle East offer investors with access to thriving economies such as the United Arab Emirates, Saudi Arabia, and Qatar. If this is not enough, you are able to diversify equity portfolios away from traditionally-favored western economies the next time you decide toopt for Middle East investing opportunities.
While much of Europe and the US seem to be making do with stagnant economic growth, it is a totally different story in the Middle East. The International Monetary Fund is actually forecasting growth of 6% in the Middle East.
It doesn’t end at that since investors in the region have also been reaping the numerous rewards, with the top-performing funds offering remarkable returns over the last five years. No wonder you can never allow Middle East investing opportunities to pass you by.
You’d be surprised to learn that the Middle East is home to a number of booming economies which seem to be flourishing thanks to their leading global position in the export of oil and gas. But most nations are looking to diversify beyond fossil fuels by actively encouraging foreign investment.
A good example is Saudi Arabia which has been one of the largest acquirers of agricultural land with the intention of bolstering food security and reducing market imports. It doesn’t end at that since parts of the Middle East also offer significant potential for growth in solar power, with relatively cheap and high levels of sunlight.
Unfortunately, there are also some drawbacks accompanying Middle East investing. One such disadvantage is the concentration of wealth across a small number of nations. It is worth noting that Saudi Arabia contributes a third of the Middle East’s gross domestic product (GDP).
Despite the efforts aimed at reducing dependence on fossil fuels, any fall in energy prices can immensely affect leading exporters such as Saudi Arabia, Kuwait, and the UAE, and their sovereign wealth funds.
That’s not to say you should shun away from investing in the Middle East since good things are destined to follow if you do it right from the word go.