Gulf fund outflows halve

Fund managers in the Gulf saw investor outflows halve in June from the previous month, while the region continued to witness net redemptions, Egyptian investment bank EFG Hermes said in a research note.

Outflows for Gulf funds halved to $26.1 million with Saudi Arabia, the largest Gulf Arab stock market, accounting for the bulk of the amount.

Middle East Africa-dedicated funds fared worse with a further $112 million outflows in June, EFG said in a note dated July 11. Outflows from Middle East, North Africa (Mena) funds eased to $30.5 million, the note said.

Global emerging market funds increased their exposure to MEA funds to 0.82 per cent of overall exposure, from a historic low of 0.71 per cent in May.

The increase was primarily driven by a rise in exposure to Egypt, the North African country aiming to rebuild itself after a political crisis toppled the government.

Investment funds operating in the unsettled Mena region were forced to refuse redemption requests by clients earlier in the year following a prolonged closure of Egypt's bourse and a slump in stock market values.