Kuwait, March 23: Just before the start of the CFA Institute Middle East Investment Conference which was hosted in Abu Dhabi from March 22-23, the affiliated member CFA societies for investment professionals in region unveiled the full results from their first Middle East Market Sentiment Survey.
With responses from nearly 200 charterholders and members from nine Middle Eastern countries, the survey reflects the current thoughts and opinions of some of the most senior financial professionals working in the region. This includes portfolio managers, analysts, chief investment officers, chief executive officers, investment advisers, pension plan investment officers and other senior financial consultants. Conducted over the past few weeks the survey also provides an interesting insight into market sentiment following recent economic challenges.

Split into three distinct categories, the survey provides market analysis on some fundamental issues facing the market and the investment and financial communities in the region. These include:
Market analysis:
n Economic confidence: CFA charterholders and members in UAE are more confident (59%) in economic growth for their business this year than their counterparts elsewhere in the region (43%)
n GCC Monetary Union: 54% of respondents believe all countries of the GCC should join in monetary union, with 56% believing it will be good for the region
n UAE stock exchanges: 93% believe all three UAE stock exchanges should merge as this will encourage greater trading volumes and liquidity as well as greater visibility to international investors
n Equities: Despite political, environmental and economic troubles seen around the region and the world, most respondents believe equities will be the best performing asset class this year followed by commodities
n Qatar and Saudi equity performance: Equities in Qatar are expected to be the strongest performers, followed by Saudi Arabia and Abu Dhabi. These are the most confident equity markets in the region
n Bahrain: remains the most pessimistic equity market with the majority of respondents (74%) anticipating negative or flat growth this year. This is followed by Dubai (59%) and Kuwait (56%).
n Egypt, Jordan and Lebanon: However the GCC remains a more optimistic region than the wider Middle East. Negativity is highest in Egypt where 74% of respondents estimate that the local equity market will see negative or flat growth this year, followed by Jordan (72%) and Lebanon (65%)
n IPO activity: 36% predicted an increase in activity, 48% replied no increase
n Debt raising: 69% predicted an increase in activity
n Mergers and acqusitions: 66% anticipate more consolidation in the market
n Foreign investor activity: 38% estimated an increase in levels of foreign investor participation in local and regional capital markets. 32% predicted it would stay the same and 26% a decrease
n Institutional investor activity: 50% estimated an increase in levels of institutional investor participation in local and regional capital markets. 31% believe it will stay the same and 16% believe it will decrease
n Inflation: 73% believe inflation will increase across the region
M.R. Raghu, President of CFA Kuwait, one of seven dedicated CFA societies based in the region, commented on behalf of all the respondents, stating: “the survey is a useful indicator of sentiment amongst senior investment professionals based around the Middle East. Whilst it is difficult to forecast outcomes in the current environment it shows a strong belief in equities as an asset class. Further, many investment professionals are optimistic about reforms to improve the market infrastructure and this bodes well for the future.”
He added: “Looking ahead we are also keen to report this survey on an annual basis to act as barometer of investor and financial professionals sentiment in the region at the start of each year”
The survey also undertook a review of the views of charterholders to levels of trust within the industry and attitudes towards further education and professional qualifications.
Trust and professional ethics
n Professional conduct: 91% of respondents believe that a corporate code of professional conduct for asset management companies should be adopted by firms in the UAE and GCC region
Education and professional excellence:
n Professional wages: 51% of respondents suggest they will stay the same, 42% that wages will increase and 4% that they will decline
n Employment: 48% believe that opportunities will increase , 37% that it will stay the same
n CFA Program: 72% of respondents believe the CFA qualification assisted them with their employment opportunities, promotion or salary, of which 83% secured the designation either at the start or mid way through their careers
n Nationals: 89% of respondents believe more nationals should secure higher professional qualifications such as the CFA Charter
Sponsored by Mubadala and the Abu Dhabi Tourism Authority, the CFA Institute Middle East Investment Conference event will include a comprehensive line-up of international speakers from some of the world’s top financial organisations and educational institutions. Held in Abu Dhabi from 22 to 23rd March, it is being hosted in association with CFA Emirates. The flagship conference is expected to attract approximately 300 of the foremost investment professionals from across the Middle East, further promoting the UAE as the region’s leading financial and investment centre. The event will be held at the Fairmont Bab Al Bahr in Abu Dhabi and is open to all CFA charterholders and investment professionals. For more information, visit: www.membersocieties.org/uae
Follow proceedings on Twitter (hashtag: #MEIC11) or catch regular updates on the CFA’s dedicated blogsite (http://meic2011.posterous.com). In addition the CFA will streamline its content on its Facebook and LinkedIn pages. It will also be syndicating all its blog posts to the Financial Times Alchemy and Long Room Online Communities, as well as to Seeking Alpha, the investment blog.