With May 2013 experiencing inflows of USD 655 million, the Middle East North Africa (MENA) region registered the highest inflows over the past five years (data available from 2009). On an aggregate basis MENA markets posted around USD 2 billion of net inflows since the start of this year - also a record level - versus an outflow of USD 192 million during the same period in 2012. Of the USD 655 million for May, the Kingdom of Saudi Arabia led the rally with USD 308 million of inflows followed by Qatar and Dubai with USD 131 million and USD 129 million respectively. For Qatar this is a hat-trick of inflows, which is a major reversal of the trend seen throughout 2011-12 when some USD 1.3 billion of foreign funds exited the country.
Aleksandar Stojanovski, Research Analyst at Deutsche Bank said: "MENA markets continue to impress with their solid performance. Dubai has advanced by more than 47% year to date, followed by Abu Dhabi at 39% and Kuwait 35% The recent upgrade in the Emerging Market index of the United Arab Emirates and Qatar reflects the confidence of international investors and will further leverage the regions visibility to represent a potential USD 400-450 million of incremental funds inflows for each country."
On a year to date basis except for Egypt, which is down 14%, all the other markets were up as follows: Oman by 16%, Qatar 14%, Bahrain 13%, Kingdom of Saudi Arabia 11% and Jordan 3%. Deutsche Bank´s MENA portfolio is up by 22.3% since its last revision in January 2013, and has outperformed the regional market by 1527 bps. For the other regional markets for which Deutsche Bank track the fund flow data, Kuwait had an inflow of USD 47 million and Abu Dhabi registered USD 40 million.