Vijay Harpalani, assistant fund manager at Al Mal Capital, says Mena countries are unique and each requires a different investment approach.
What is the asset class and geography you are focused on?
We are a Mena-focused asset manager and I am involved in managing long-only equity funds and fixed-income mandates. I started my career in 2006 during the bull market phase, and I have been fortunate to have experienced both bull market and bear market cycles in a short period of time. Although Mena appears to be one region, each geography requires a different investment approach. My investment process is based on a combination of top-down and bottom-up approach.
What is the outlook for the medium term in your opinion?
The global macroeconomic picture does not make a very exciting read, with too many unknowns. The US Fed has discontinued pumping liquidity into the system. The possibility of the euro zone going into deflation is a major concern as the ECB does not have the flexibility to make prompt decisions and has limited options at its disposal. GDP growth in China is likely to be lower than what it was in the past decade. As for the Mena region, the sharp decline in crude oil prices has built a consensus that it is likely to impact growth. I would like to differ here. If we look at the GCC, countries such as Saudi Arabia, Kuwait, the UAE and Qatar have built huge sovereign reserves over the past several years because of high oil prices. So I believe that governments in the GCC may not curtail their spending in the near future in response to low oil prices, as much of that spending relates to building infrastructure and creation of employment opportunities which is critical for non-oil economic growth. In the medium term I expect volatility to continue in the regional markets. Economic growth momentum, specifically in the UAE and Qatar, is likely to be sustained. In Saudi Arabia, the recent stock market correction provides an opportunity to accumulate fundamentally strong companies at reasonable valuations.
What are the main risks (either upside or downside) to the outlook?
Key downside risks are increases in interest rates earlier than anticipated; prolonged deflation in the euro zone; substantial fall in oil prices below budget break-even price of most GCC countries and worsening of regional geopolitical situation.
What is the best investment at the moment in your opinion?
I am positive on the healthcare and consumption sectors in the region. Companies operating in these sectors offer good opportunities in the long term. Companies with an excellent management team, scalable business model, strong free cash flow-generating capability and conservative capital structure within these sectors should do relatively well.
What was the best investment you were ever involved in?
My best investment decisions came from the consumer and healthcare sectors in Saudi Arabia last year. The country was going through a tough transition phase because of implementation of the Nitaqat programme to provide employment and improve living standards of Saudi nationals, which also meant increasing their disposable incomes. Using the top-down approach we focused on demographic themes such as consumption and health care. Within these sectors, my best picks were Al Othaim and Dallah Healthcare, which generated returns of over 75 per cent and 55 per cent, respectively, in less than a year. Al Othaim was a play on Saudi Arabia’s underpenetrated grocery sector that was available at attractive valuations and had a scalable business model. Dallah was a private healthcare provider with aggressive expansion plans and a very clear strategy.
What was the worst?
In the later part of this year I moved out of consumer and healthcare sectors as I was not comfortable with extremely demanding valuations. There was more money to be made in these sectors and I missed out by exiting early.
halsayegh@thenational.ae
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The years Ramadan fell in May
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
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Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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UAE currency: the story behind the money in your pockets
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Mohammed bin Zayed Majlis
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
Jawan
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Qosty Byogaani
Starring: Hani Razmzi, Maya Nasir and Hassan Hosny
Four stars
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
UAE currency: the story behind the money in your pockets
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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Scoreline
Bournemouth 2
Wilson 70', Ibe 74'
Arsenal 1
Bellerin 52'
The Great Derangement: Climate Change and the Unthinkable
Amitav Ghosh, University of Chicago Press
Asia Cup 2018 final
Who: India v Bangladesh
When: Friday, 3.30pm, Dubai International Stadium
Watch: Live on OSN Cricket HD
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
