Frontier fund managers who once mainly charted the stock indexes of Dubai and Doha are looking increasingly at Lagos and Lusaka.
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Fund managers in the Emirates are building up positions in sub-Saharan Africa to counter a rapid decline in Gulf markets where share prices have tumbled this year.
"We are definitely bullish on Africa," said Mark Mobius, the executive chairman based in Singapore of Templeton Asset Management's emerging-markets group. Nigeria now has the largest country weighting in the Templeton Frontier Markets Fund, accounting for 11 per cent of its investments. The UAE accounts for 8 per cent of the same fund.
Gulf investors and fund managers are banking on growth in the continent's economies to perform strongly in light of a weakened global economic outlook.
The economy of sub-Saharan Africa is expected to grow by more than 5 per cent this year and next, compared with 2.8 per cent in 2009, according to a report published by the IMF last week. That compares with a projected growth of 4 per cent this year for the Middle East, 1.5 per cent for the US and 1.7 per cent for the EU.
Africa accounts for 13 per cent of the MSCI Frontier Markets Index, while the Middle East accounts for 60 per cent. That split could shift as more funds are drawn to the continent and banks move operations. Barclays and Standard Chartered have relocated employees serving the continent from Dubai to South Africa.
"These markets have a lot in common with the Gulf, although they have different economies and GDP per capita. Middle East and sub-Saharan markets both have underdeveloped capital markets," said Rami Sidani, the regional head of investments at the asset management company Schroders in Dubai.
Mr Sidani manages US$50 million (Dh183.6m) of assets for the company's frontier fund, launched in January, domiciled in Luxembourg and heavily invested in the Middle East and Africa.
"For us, it was a natural expansion to move into sub-Saharan markets as a diversification play, particularly Nigeria and Kenya, given that we are already looking at Egypt, Morocco and Tunisia," he said.
One of the selling points for the sub-Saharan market is that it indirectly benefits from the Chinese growth story, said Mr Sidani. Africa is home to 30 per cent of the known mineral deposits in the world, and China is the largest user of minerals, especially copper and zinc.
Invest AD, based in Abu Dhabi, is a major investor in Nigeria's banks, aiming to benefit from the country's economic growth, expected to reach 7 to 8 per cent this year.
"Some banks are trading below book value, indicative of the attractive valuations on offer in a Nigerian stock market that is only starting to perk up for the first time since the global financial crisis," said Mohammed Al Hashemi, the head of asset management at Invest AD. "With non-performing loans at single digits, loan growth is forecast at around 15 per cent this year, with some banks probably reaching 25 per cent."
The Nigerian Stock Exchange, one of the most liquid bourses in Africa, has a $50.9 billion market size that is equivalent to 18.1 per cent of the country's GDP.
In contrast with other frontier markets, African economies fared comparatively well during the global financial crisis in 2008 as a result of weaker linkages to the rest of the world. Changes in ownership structure and integration of African banks into the global financial market have been slow, which helped avert a crash in the continent's financial services sector.
Now Africa is again attracting attention.
"There is a wider trend of frontier-market funds being launched with asset managers building positions or placing bets on sub-Saharan Africa," said Fadi Al Said, a senior fund manager at ING Investment Management in Dubai. "The appeal is that they have shown over a long period of time a low correlation with global markets, so from a risk perspective it makes sense."
halsayegh@thenational.ae
RESULTS
5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
Winner: M'A Yaromoon, Jesus Rosales (jockey), Khalifa Al Neydai (trainer)
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
Winner: No Riesgo Al Maury, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Winner: Dolman, Antonio Fresu, Bhupath Seemar
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Results
5pm: UAE Martyrs Cup (TB) Conditions Dh90,000 2,200m
Winner: Mudaarab, Jim Crowley (jockey), Erwan Charpy (trainer).
5.30pm: Wathba Stallions Cup (PA) Handicap Dh70,000 1,400m
Winner: Jawal Al Reef, Richard Mullen, Hassan Al Hammadi.
6pm: UAE Matyrs Trophy (PA) Maiden Dh80,000 1,600m
Winner: Salima Al Reef, Jesus Rosales, Abdallah Al Hammadi.
6.30pm: Sheikha Fatima bint Mubarak (IFAHR) Apprentice Championship (PA) Prestige Dh100,000 1,600m
Winner: Bainoona, Ricardo Iacopini, Eric Lemartinel.
7pm: Sheikha Fatima bint Mubarak (IFAHR) Ladies World Championship (PA) Prestige Dh125,000 1,600m
Winner: Assyad, Victoria Larsen, Eric Lemartinel.
8pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Group 1 Dh5,000,000 1,600m
Winner: Mashhur Al Khalediah, Jean-Bernard Eyquem, Phillip Collington.
Abu Dhabi race card
5pm Abu Dhabi Fillies Classic Prestige | Dh110,000 | 1,400m
5.30pm Abu Dhabi Colts Classic Prestige | Dh110,000 | 1,400m
6pm Abu Dhabi Championship Listed | Dh180,000 | 1,600m
6.30pm Maiden | Dh80,000 | 1,600m
7pm Wathba Stallions Cup Handicap | Dh80,000 | 1,400m
7.30pm Handicap (TB) |Dh100,000 | 2,400m
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
All Black 39-12 British & Irish Lions
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
