What is the asset class and geography you are focused on?
We are specialists in the UAE equity markets, with in-depth knowledge of all listed equities. We also have a strong network in the country, which has given us access to deep liquidity in listed and OTC equities traded in the UAE.
What is the outlook for the month ahead?
The UAE markets have sustained a bullish trend since early last year after hitting an all-time low in early 2012. The trend began by re-pricing oversold equities and continued as liquidity began flowing into the country. The influx of liquidity into the UAE markets has especially increased since late last year, as we witnessed more regional players stepping into the UAE markets with fresh cash. This trend still seems to be in its initial stages and may prove to be one of the strongest bullish markets that the UAE has ever experienced. For the medium to long term, this market is still poised for higher prices. Besides, lower yield on other investment alternatives has made equities and direct real estate investments look even more attractive. We experienced a lot of volatility in the month of March, but most importantly we have completed the technical correction induced by many of the large caps going ex-dividend. The dip in the overall indices has now fully completed and the market is looking for higher levels. The current wave in the market should have enough momentum to take us through all of April and May, as the UAE and Qatar effectively join the MSCI Emerging Markets Index in May.
What are the main risks to the outlook?
As long as inflation is controlled and interest rates remain stable, economic risks would stay minimal in the foreseeable future. Nevertheless, the speculative elements and delays of implementing advanced trading techniques remain prime concerns. Many listed stocks have already entered into overvaluation, while others are still in the lower range of fair valuation. We need effective tools to counterbalance the buying leverage in the market and thus act as smoothers – short selling and market making activities. On a different note, we are still exposed to geopolitical risks. These risks are always present in the region and they continue to be our main concern. However, recently we have seen the geopolitics in the region calm down as Iran’s new government yields to a diplomatic approach to the West and the western-imposed sanctions.
What is the best investment at the moment?
The best investments will always be subject to the profile of the investor. Each investor, whether individual or institutional, has different investment objectives, be it required return, risk tolerance or investment constraints such as liquidity and time horizon. In other words, there is no magic bullet answer for this question. Nevertheless, we emphasise the importance of business cycles. Under current circumstances, we believe that real estate, banking and hospitality sectors will be the first to reflect the economic growth until 2020. Consumer goods and other retail segments shall follow based on how the inflation and interest rates look like in the near future.
What was the best investment you were ever involved in.
My best investment was putting time and effort into the ride through the bear market of 2008 until it finally gave way to the bull market we are seeing today. During this time, people in the field were questioning the viability of their careers as profits and capital dwindled and eventually disappeared. But after sticking through these hard times, the efforts we have made over these past few years have finally come to fruition.
What was the worst?
My worst investment was a loss of opportunity in the local real estate market. There were all the signs of a market bottoming in 2009 and 2010. It was hard to overcome the fear and buy some real estate at the time. Now I have to deal with prices that have almost doubled in most cases.
jeverington@thenational.ae
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Isle of Dogs
Director: Wes Anderson
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
MATCH INFO
Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)
More from Neighbourhood Watch:
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
The specs: 2018 Infiniti QX80
Price: base / as tested: Dh335,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 400hp @ 5,800rpm
Torque: 560Nm @ 4,000rpm
Fuel economy, combined: 12.1L / 100km
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
PAKISTAN SQUAD
Pakistan - Sarfraz Ahmed (captain), Azhar Ali, Fakhar Zaman, Imam-ul-Haq, Babar Azam, Shoaib Malik, Mohammad Hafeez, Haris Sohail, Faheem Ashraf, Shadab Khan, Mohammad Nawaz, Mohammad Amir, Hasan Ali, Aamer Yamin, Rumman Raees.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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
The biog
Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.
His advice to anyone starting out in business is to have no fear as life is about taking on challenges.
“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.
"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”
Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.
He relaxes by spending time with his family at home, and enjoying his wife’s India cooking.
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Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
