Gulf companies should allow greater ownership by foreigners if they want to attract long-term institutional investors, according to the former chief executive of Shuaa Capital.
"I hope the GCC will be added to the MSCI emerging market index because that would bring in long-term funds and money from all those who have allocations to emerging markets, including endowments, universities and others," said Iyad Duwaji, who stepped down as the chief executive of Shuaa last month after 17 years in the post. "Government support is essential in addressing some of the issues." MSCI Barra, a compiler of stock indexes, classifies Gulf countries as frontier markets rather than emerging markets.
This affects demand for stocks from the region, because many institutional investors or asset managers who track MSCI indexes are restricted from investing in frontier markets. MSCI said in a statement that it "encourages the Emirati regulator to find ways to further facilitate equal foreign access to the local equity market".
The UAE and Qatar are on a watchlist at MSCI and could eventually receive emerging market status once remaining issues over ownership, settlement and custody are resolved. Mr Duwaji said ownership restrictions made it hard to convince large institutional players to invest in certain GCC markets or sectors. "Investors want to chose from all sectors when constructing a portfolio. If they can't, it makes it difficult to convince them to look at the whole market."Shuaa, and with it Mr Duwaji, was instrumental in attracting international investors to the GCC.
In the early part of the decade, Shuaa was the first to collect data on the region's 700 listed companies, to start research for clients, introduce indexes and list local companies before the arrival of international investment banks.
But Shuaa has had a tumultuous year. It made a loss in three consecutive quarters, largely because of trading losses; was fined almost US$1 million (Dh3.67m) for share price manipulation late last year; and was involved in a long-standing dispute with the Government-owned Dubai Banking Group (DBG).
The public battle over a Dh1.5 billion convertible bond ultimately gave DBG a 48.4 per cent stake and de facto management control.
The dispute sent Shuaa's shares lower and triggered a cut in its credit ratings as investors feared a drawn-out court battle.
uharnischfeger@thenational.ae
Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
Iraq negotiating over Iran sanctions impact
- US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
- Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
- Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
- Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
- Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
- The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
- Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
- Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
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How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
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2. Prayer
3. Hajj
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5. Zakat