A leading regional brokerage expects GCC companies to record double-digit earnings growth next year as governments continue to spend on key infrastructure projects.
Besides the robust overall outlook, Mubasher Financial Services also yesterday announced its 2014 top stock picks for the region.
Mubasher included Emaar Properties, Aldar, Abu Dhabi Commercial Bank, First Gulf Bank and Aramex in its list, citing a strong outlook for the coming year.
From Qatar, Mubasher said it was bullish on the mobile operator Ooredoo (formerly known as Qtel), Commercial Bank of Qatar and Qatar Electricity & Water.
In Saudi Arabia, Mubasher’s head of research Amr Elalfy selected Mobily, Saudi Basic Industries Corporation (Sabic), Saudi British Bank and Saudi Ceramics.
Separately, Mr Elalfy said he expected traded value to improve in Egypt next year in the event that “political stability is restored”.
But the big picture looks good.
“The macro stimulus plans that some of the GCC states are doing, such as Kuwait and Saudi, and big projects happening in the near future, such as the World Cup in Qatar and Dubai hosting the Expo 2020,” is going to be driving markets over the next year, said Tariq Qaqish, the head of asset management at Al Mal Capital, an investment bank in Dubai.
“In the UAE, you also have the revival of projects that were stalled or put on hold for various reasons. Overall, the GDP numbers are looking positive for all GCC countries. They are above emerging markets and developed countries’ growth potential.”
Arabian Gulf equities rallied this year as investors pinned hopes that the UAE and Qatar would be reclassified as emerging markets and as speculation simmered that Saudi Arabia was making plans to liberalise its stock market.
The international index compiler MSCI, which tracks US$7.3 trillion in equities around the world, in June upgraded the UAE and Qatar from its previous designation as a frontier market.
The Abu Dhabi Securities Exchange General Index has gained 54 per cent since the start of the year, while the Dubai Financial Market General Index has surged more than 95 per cent in the same period. Qatar’s benchmark has risen 26 per cent, while shares listed on Saudi Arabia’s Tadawul are up about 23 per cent.
“We cannot complain,” said Khaldoun Jaradat, a trader at Brokerage House Securities in Abu Dhabi. “More than this, what could we possibly want? Its more than enough. As an investor, it’s great.”
halsayegh@thenational.ae