Mena has huge capital: Al Tayer

While oil prices have come off their historic highs of 2008 that fuelled spectacular levels of wealth accumulation in the region. (EB FILE)

There are increasingly significant levels of capital available in Mena and investors are interested in alternative investments as there continues to be a slow but noticeable increase in hedge funds with a Mena focus, said Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre, at a conference yesterday.

He said emerging markets are more important than ever before as they are both a source and destination for global capital. There is increased consumption in these markets, and they will continue to accumulate capital, as a result of balance of payment surpluses driven by natural resource exports, as in the case of Gulf exporters, or manufactured exports, as in the case of India, China and other emerging economies.

Companies from emerging markets are capturing international headlines as they expand and acquire assets, whether raw material rights in places such as Africa or companies in North America and Europe.

In Mena, the accumulation of sovereign and private wealth, a young and fast-growing population and market liberalisation and regulatory reforms are providing the foundation for forecasts of sustained growth across this region for years, he said.

"While oil prices have come off their historic highs of 2008 that fuelled spectacular levels of wealth accumulation in the region, it is clear even at the $70-$80-per-barrel range, Gulf oil producers will continue to accumulate wealth that will move through their economies and those of their neighbours."

What's more, the economies of nearby Asia – which are growing even more rapidly than Mena economies – are positively impacting Mena economies through historic trade, investment and labour links.

 

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