Big Inflows into 2 Gulf-wide investment Sectors, within 12-month

Asset managers in the Gulf states are expected to foresee a rise in inflows of Islamic assets and ESG-sensitive investments, over the next 12 months, with robust demand for them, Moody’s, rating agency concluded, following a poll.

The investment heads of the Gulf region’s eight top investment firms were included, in Moody’s survey sample.

Flows were predicted to increase by more than two decimals, by half of them.

And 33% of them predicted growth rate, in the single digit.

Vanessa Robert, Moody’s Corporation Senior Vice President of Credit, agrees.

Investment results will improve and fees will be higher.

Stronger revenue growth will be supported by the Gulf region’s already quite high level.

The survey indicated that 38% of participants expect a major increase in demand for investment products, that take into accout the government’s environmental, social, and corporate governance policies.

In the coming year, half of those polled, expect Islamic product sales to outpace conventional investments.

The rising demand is a result of the Gulf region’s huge Muslim population and the industry’s efforts to broaden the range of Islamic investment options.

The industry’s interest in mergers and acquisitions (M&A) indicates the asset sector’s expanding complexity, as well as increasing competitive challenges in the Gulf region.

Investors were mainly upbeat, as their concerns about the epidemic’s economic impact and the volatility of oil prices are fading.