CFA Institute releases Middle East Market Sentiment Survey: Unveils Economic Outlook and Investment Opportunities in the MENA region

CFA Institute, the global association of investment professionals, has launched the results of its annual Middle East Market Sentiment Survey at a press conference ahead of its Middle East Investment Conference (MEIC), to be held in Jordan on 9th and 10th April 2014 under the patronage of His Majesty King Abdullah II ibn Al – Hussein.  The survey draws upon responses from CFA charterholders and CFA Institute members from across the Middle East and North Africa region.

According to the survey, respondents believe investment opportunities will be best in Saudi Arabia (85% predict it will be good or excellent), UAE (83%), and Qatar (79%) over the next three years. In Jordan, 51% of respondents expect investment opportunities to be neither good nor bad while 35% of respondents anticipate there will be good or excellent investment opportunities over the next three years.

Jameel Anz, CFA, President of CFA Society Jordan, commented:

“We are delighted to be hosting the Middle East Investment Conference in Jordan for the first time. The findings from our survey suggest that half (51%) of respondents believe that improving market integrity and transparency is the key to Jordan’s success in ensuring long term sustainable economic growth, followed by 20% of respondents who think that increasing educational opportunities is the second priority in achieving this goal. The survey results reflect the discussions and debates we hope to provoke and encourage at the conference, where practitioners, leading thinkers in finance and investment, and eminent speakers will reveal insights about the future of the Middle East financial landscape and what the opportunities are for investors.”

Speaking about the survey results, Nitin Mehta, CFA, Managing Director of CFA Institute in Europe, the Middle East, and Africa, added:

“For the fourth consecutive year, CFA Institute has surveyed charterholders and members in the Middle East to reveal the expectations for the investment climate of some of the most senior financial professionals working in the region.  Many CFA Institute members are positive about economic and investment opportunities. Additionally, they expect employment opportunities for investment professionals to increase in 2014 while wage levels should either stay the same or increase. All of these topics and many more will be part of our extensive programme at the upcoming Middle East Investment Conference.”

The top five findings from the survey are:

1. Local economic expansion predicted in 2014: 80% of CFA Institute members expect their local economies to expand in 2014, 76% expect their businesses to expand and 67% expect the global economy to expand. The UAE, Saudi Arabia and Qatar are expected to experience the strongest economic growth in the MENA region in 2014.
2. Increases in foreign investments (68%), initial public offerings and equity raising activities (66%), and mergers and acquisitions (64%) is expected in 2014, but also higher inflation in local markets (90%).
3. Positive economic impact from the Arab Spring still believed to be greater over the next five years than in 2014: While 61% of respondents expect political change occurring from the Arab Spring to result in decreased economic growth rates in 2014, nearly the same portion (63%) expect it will create increased economic growth rates over the next five years.
4. MENA economies are not very competitive: Only 18% of CFA Institute members believe MENA economies are competitive in the global economy. Increased investment in infrastructure (96%), political stability and good governance (92%) and private sector development (92%) would have the most positive impact on MENA economies in 2014.
5. Improving market integrity, transparency,  and education, will help Jordan the most in ensuring long-term sustainable growth. Half (51%) of the respondents believe that improving market integrity and transparency is the key to Jordan’s long-term economic success, followed by 20% of respondents who think that increasing educational opportunities is the second priority.

In collaboration with CFA Society Jordan, the MEIC will be hosted at the King Hussein Bin Talal Convention Centre. Under the Patronage of His Majesty King Abdullah II ibn Al Hussein, the MEIC will bring together leading business figures from across the MENA region, respected international practitioners, policy makers and macroeconomic experts, to examine the challenges and opportunities facing Middle East economies. For further information visit: http://meic.cfainstitute.org, follow @CFAemea and #MEIC14.

Methodology 
An online survey was conducted from 23 February to 20 March 2014. CFA Institute members and those with charters pending in 12 countries across the Middle East and Northern Africa were invited to participate in the survey. An overall response rate of 5% was generated (98 out of 1818 responded) with a margin of error of ±9.6%.  The survey consisted of thirteen questions in total.