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MiddleEastInvestment10

Opps in Egypt, Saudi, Qatar

Wednesday, October 20, 2010 - 05:42

October 20, 2010 - Speaker: Mohieddine Kronfol, Managing Director, Algebra Capital - Presenter: Ruben Ramirez, Reuters.

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Our next guest says he's cautiously optimistic the gulf region has turned a quarter following the global financial crisis joining us here at the Middle East investment summit in Dubai . -- crumple managing director algebra capitol thank you very much for joining us and it's good to see you again it's my Community and in there with financial markets the there we. I get cautiously optimistic we think. -- we're against current and the corner and from a valuation point of if you look at the equity markets of months we've seen a wave of debt issues we saw the Dubai government issue one point two billion dollar bond -- our Q tell. What does this mean for the bond market going forward cheaper for these shores even if that's if there are coming at vice president of the past. But also there's generally that's an internationally for a global emerging markets and there isn't you know hunt for we've been speaking with -- crumpled managing director algebra capital. In Dubai on Ruben Ramirez and this is Reuters. -- Our next guest says he's cautiously optimistic the gulf region has turned a quarter following the global financial crisis joining us here at the Middle East investment summit in Dubai . -- crumple managing director algebra capitol thank you very much for joining us and it's good to see you again it's my pleasure Sam and sees -- the worst is past. Sentiment is improving. -- expecting government to continue expansionary spending. What does that mean for investors where should investors be looking to either sectors or particular countries within the region. Would expect to what investors should investment. Community and in there with financial markets the there we. I get cautiously optimistic we think. -- we're against current and the corner and from a valuation point of if you look at the equity markets where roughly a 50% of whom were three years ago on. 50% of where were you know five years ago. But nonetheless you know Wisconsin to work through very important challenges not least of which is. You know you know providing you know getting access to international markets and access to funding. Restructuring in certain cases. Amended admitted being able to actually move forward that -- producer -- growth and earnings -- I think companies or people investors and need to see. So again we do think that there are opportunities but we've also had a pretty significant for pricing in the past few months which means that going forward. Within it there are opportunities with care you want to be more selective. And -- we want to be cognizant of the challenges of the soon to. Sell any particular countries within the region that are catching your attention right now. There's certainly I -- I think you can now I think the French it you know amongst countries in the region and so countries such as each. -- read them -- they're certainly seen. But they're now better able to do with the challenges they face. And that countries such dozen of the UAE. Kuwait's. And did it continue to let him work through some of the some of the follow us from the financial crisis. And -- of other countries that are Elizabeth Morgan on a neutral for things such those in the month and other countries in North Africa for -- so. Over the past couple of months we've seen a wave of debt issues we saw the Dubai government issue one point two billion dollar bond -- our Q tell. What does this mean for the bond market going forward are we likely to see more issues. In the in the next twelve months. Yes the short answer is yes and what you what you have seen what's wrong with us right now is actually the reopening of these -- the markets to issuers in the region. And this is actually fairly substantial load and issuances that this Padilla -- the announcement of the by it was restructuring. So on the one hand you the you know pent up demand if you want from the issuance from issuers. Because they haven't had -- accident and did you have to have real needs for funding but on this act on the on the other hand you also. You know other factors -- and -- in this issuance on the one on this that are generally though suit that was of interest at which banks basically borrowing. But -- Marxist -- cheaper for these shores even if that's if there are coming at vice president of the past. But also there's generally that's an internationally for a global emerging markets and there isn't you know hunt for yield and sense of but in all three factors I think are coming together -- through negotiations forward. As far as -- our outlook without a doubt I think all companies now and the region that want to think strategically about funding are looking to access the markets. So not only are you going to see you know -- are older old issuers come to the market again. But -- to -- that a person shores and in that sense that's going to be very positive for the development of the regions on markets. Over the next five years what -- policy makers here in the region need to focus on. That's a great question and actually thank you for asking because from our point of view there really. Three I think main issues of governments need to focus on the first -- is reality. Focus on death and financial services were from a depth and financial services somebody that really means we mean. Promote thing more than just commercial banks and mean historically commercial banks have been the primary source of credit. And their redid the bulk and that means 90% of the financial services sector so we'd like to see. Some significant investment to promote and pension funds insurance companies welcome us with management's amongst others who really given to develop more depth of financial services and the reason. We also think that government should move a quite aggressive in promoting a culture of credit here. On the one hand to help companies rated you know access. That's a -- them. But you know without also to give investors the comfort -- better and so considerations aside for a and finally we do think that -- not just in other than just investing in infrastructure. There needs to be you know investing a soft infrastructure so what does that mean. Continue to improve confidence -- in the region and work on transparency governance legislation regulatory issues. All of which is home to develop a comfort for -- think international investors upon investors. It's important for the private sector to want to do business and invest here in the long run so those are the three things that we think -- or policy makers should be. Focused -- We'll leave it there thank you very much in -- we've been speaking with -- crumpled managing director algebra capital. In Dubai on Ruben Ramirez and this is Reuters. --

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Opps in Egypt, Saudi, Qatar

Wednesday, October 20, 2010 - 05:42