MENA Equities: Rethinking Exposure in Emerging Markets

With the MENA region becoming a significant part of the MSCI EM Index over the past few years, it is a space that is increasingly interesting for EM investors. As one of the fastest growing markets in the emerging world, we believe there is a structural case to hold MENA equities for global institutional investors and asset allocators. This includes: Evolution of Capital Markets • Capital markets in MENA have evolved rapidly due to regulatory reforms, change of political leadership and will, technological advancements, and increased investor participation • Improved liquidity and transparency have made MENA equities more accessible to both institutional and retail investors. Transformational Growth from Non-Oil • MENA’s non-oil sectors have witnessed significant growth, driven by economic diversification efforts. • Themes such as technology, healthcare, and renewable energy are reshaping the investment landscape. • For example, Saudi Arabia is targeting renewables to become 30% of electricity generation. Private healthcare is targeted to represent 40% of overall bed capacity by 2030 Societal Transformation • MENA countries are undergoing significant societal changes, impacting business models and investment opportunities. • Demographic shifts, urbanization, and cultural transformations influence equity markets. Hear Mehdi Kaoukabi, CFA, Portfolio Manager at FIM Partners, deep dive and explain why this growing segment of the Emerging Markets is gradually becoming too big to ignore