DOHA: GCC markets have the potential to “rotate” ahead of current market leaders like the US and exceed their growth rates, top financial experts noted while attending various sessions at the two-day Euromoney Conference that concluded here yesterday.
Ralph Acampora, Director of Technical Analysis, Altaira, made a bullish case for the on-going rise of global stock markets. He pointed to the fluctuation in the stock market in October 2014, when global concerns over recession in Europe, slowdown in China and geopolitical concerns drove the Dow Jones down by 8.6 percent and the Dax by 16.7 percent. However, markets recovered within a matter of days, demonstrating growing optimism and rising demand.
In particular, he pointed to the comparatively positive response by the Qatar Exchange, which fell by 10.2 percent and quickly recovered to set new highs within weeks and argued that markets like Qatar that recover fastest from shocks often deliver the best performance down the line.
Analysts speaking at the event suggested that a change was happening to the historic perception of GCC securities and equities markets, where previously value was predominantly defined by the price of oil and geopolitical risk. Increasingly, investors are looking at the fundamentals of different companies and the new opportunities opening in the region.
This rising interest and optimism is being supported by GCC countries’ on-going investment in human capital and development. Abdulaziz Al Horr, Chief Executive Officer, Qatar Finance and Business Academy, spoke of his institution’s success in attracting students from all sectors, and the growing demand for certification.
“In Qatar, we are seeing an increased appetite for professional development and qualification. As well as corporates supporting the training of their executives, individual professionals are investing in their own professional development, which is why we are seeing rapid year-on-year growth in student intake,” he said.
While experts were positive about the potential for growth in the real estate sector, experts on the
Qatar, on the other hand, has a clear distinction between its residential sector, which is predominantly aimed at Qatari nationals, and its office and commercial sector, which is increasingly reaching out to both local and international investors. The rise of three key mega-projects – Lusail City, Msheireb Downtown and The Pearl – is likely to have a transformative effect on Qatar’s real estate market in the coming years, which will need to be carefully managed to ensure supply and demand remain balanced.
“There has been good progress in enhancing legislation governing real estate in Qatar in 2014 to ensure investor confidence and deliver sustainable growth in the sector, in particular with the passing Law No 6 of 2014 Regulating Real Estate Development. Measures within this law – such as enforcing escrow accounts for off-plan investments – will play an important role in sustaining positive sentiment,” said Jeremy Scott, Senior Associate, Real Estate, Al Tamimi & Company.
The Peninsula
