Asset managers in the Gulf Cooperation Council expect an increase in inflows over the next 12 months, on Islamic assets and ESG-sensitive investments, with strong demand for them, according to a survey by rating agency Moody's.
According to Arabiya Net, Moody's survey sample included the investment heads of the eight largest investment companies in the Gulf region, and half of them expected that flows would grow by more than two decimal places, and 33% of them Expect double-digit growth, said Vanessa Robert, senior vice president of credit at Moody's.
Improving investment results and stronger fees, which are already relatively high in the Gulf region, will support stronger revenue growth.
The survey found that 38% of respondents expect a significant increase in the demand for investment products that take into account the government's environmental, social and corporate governance, according to the report seen by Al Arabiya.net.
Half of those surveyed expect sales of Islamic products to grow faster than traditional investments in the next year.
The growing demand reflects the large number of Muslims in the GCC region, and industry efforts to expand Islamic investment options.
And half of the respondents say they are open to M&A activity over the next two years.
The industry's interest in mergers and acquisitions reflects the growing sophistication of the asset sector in the GCC, as well as increasing competitive pressures.
Investors were extremely optimistic, overshadowing their concerns about the economic impact of the epidemic and fluctuating oil prices.
