MANAMA: Equity sales surged by 21 percent in the GCC region during the first half of the year, something that has contributed significantly to the overall recovery of the world’s stock markets, an expert has said.
“While complete decoupling may not be around the corner, the GCC has seen the return of international investment flows,” said Jervis Smith, managing director, Global Head of Client Executive, Global Transaction Services (GTS).
“Where previously there had been negative perceptions, fed primarily by high-profile stories around Dubai’s property crash and various technical issues surrounding the status of the GCC markets in a global portfolio, the region has risen above these by continuing to encourage on-the-ground fund management,” added Smith, who also presented a paper at the Fund Forum in Bahrain on Thursday.
“This is strongly supported by fundamentals such as the continued mounting of private wealth, the deepening of an equity culture and a fast-improving regulatory backdrop,” he added.
Citi, he said, among other leading providers, recognized the demand for a truly global provider to work in partnership with the region’s securities and funds industry, and has been engaged in developing its local securities and fund services presence in the Gulf states. “This translated into the move by Citi’s Securities and Fund Services (SFS) division of its perennial Global Transaction Services — SFS contributes about 33 percent of the total revenue generated by GTS.”