DUBAI: One of Dubai’s biggest investors believes Gulf Arab equity markets still have further to fall but that the region’s two biggest bourses —- Saudi Arabia and Dubai —- will bounce back by the end of the year.
“These markets are trying to search for a bottom,” said Mustafa Farid, chief executive officer of the Dubai Capital Group, which controls $2.6 billion in investments in the Middle East and North Africa. “I don’t like it if the market recovers quickly,” he told Reuters by telephone. “It should consolidate.”
Leading indexes in Dubai and Saudi Arabia should rise 20-30 percent from their nadir — which has yet to be reached — by year end, he said.
The DFM general index, which has fallen 28 percent so far this year, fell another 2 percent yesterday, while the Saudi’s blue chip measure, which has fallen 29 percent this year, gave up another 2.8 percent.
Emerging markets stocks, as measured by MSCI, have fallen over 36 percent so far this year.
Farid said he expected Dubai Capital’s performance to be robust despite sharp falls in regional equity indices.
