DUBAI: Investors from the region have started to look more to the East than the West and the scenario has been changing rapidly, according to a top financial expert.
"Investors from the Gulf region, in particular from Saudi Arabia and the UAE, have started to think about emerging Asian market, China and India in particular," Mohab Mufti, CEO of Asiya Investments Dubai told Arab News in an interview.
He was talking on the sidelines of the launch of Asiya Investments' advisory firm at Dubai International Financial Centre (DIFC). The firm is a wholly owned subsidiary of the Asiya Investments group, previously known as KCIC, the Kuwait-listed investment.
The group is the first GCC-based investment firm focused entirely on investing in Asia as well as providing advisory services to cater to capital flows between the Middle East and Asia. In particular, Asiya Investments looks to build upon the increasing trade and financial flows between the GCC and the emerging Asian economies (ex Japan), which currently in 2012 account for nearly 50 percent of global growth in real terms. Key sectors for the firm include energy, financial services, real estate, consumer products and infrastructure.
"We will be able to utilize our market insight and privileged relationships in Asia to the benefit of our partners and clients here in the Middle East region," Mufti, a Saudi national with 25 years' experience in the UK and GCC financial services industry, said. "Soon we will launch our Hong Kong office also."
Before joining the group, he was the CEO of Qonsul Ltd., a London-based advisory firm and prior to that he was the CEO of Gulf International Bank (UK) Ltd. as well as a non executive board member of GIB financial Services Saudi Arabia and a member of the board of the UK Arab Bankers Association. Most of the time I focused on investing in financial firms in Europe and the US. However, in the last few years, I started to develop a strong sense that East is a best place to invest for Arabs, especially investors from the Gulf region," he added.
"Time is changing. Now the Arab investors are aware about the potential of the emerging Asian markets. In the past I used to hear them talking about the UK and the US, but now I can hear them talking about China and India at different occasions and locations," he said.
"I am excited to be a part of this project, to put together businessmen from all over the Gulf region, and it is my pleasure to come back to my region after several years," he said.
"The growth in the Middle East and Asia will continue for the next 20 years and it is always better to strengthen ties between emerging Asia and the Middle East," he noted.
"Our group wants to expand and invest beyond China. We will ensure a more secure and easy investment for our clients. Utilizing our vast network of contacts in the region, we help our clients identify investment opportunities and establish strategic relationships," he said.
My task is to take the organization to its next phase and I hope I can bring an array of investors from Saudi Arabia, the UAE and other Gulf countries. Our Dubai office will be the gateway between the Gulf and Asia," he added.
The company's target audience includes sovereign funds, regional financial institutions and family investment offices. What these investors will share is a desire to further diversify their foreign investments and benefit from the Eastern growth phenomena.
"We firmly believe that this is the Asian century and that Arab investors, who today have more than 85 percent of their foreign portfolios allocated to mature markets, must rebalance in line with an economic power shift to the East, which will only become more pronounced in the years and decades ahead."
When asked about the possible political risks in Asian countries, he said it is also there in some western countries. "We have a special research team to focus and study the situation," he added.
"We do not simply sell products. We invite co-investors and provide informative services," he said.
Commenting on the new launch, Group Managing Director of Asiya Investments and Chairman of Asiya Investments Dubai, Ahmad Al-Hamad, said: "We are delighted to announce the launch of Asiya Investments, the new brand under which each of our companies will now operate. The group's transition into a client focused business marks the third phase of our growth following our establishment with $300 million of capital and subsequent expansion from a focus on China to investing across the developing Asian countries.
"The company aims to address the imbalance in GCC investor portfolios between the 21st Century growth markets of Asia and traditional legacy markets. Despite low rates of growth, Arab capital invested overseas remains largely concentrated in Western markets," said Faisal Nawas, group chief investment officer and board member of Asiya Investment Dubai Ltd."
We will be focusing on different areas in India, China, Indonesia, Thailand and setting up real estate projects and three star hotels," he added.
