Morgan Stanley analysts expect $82 billion to flow into Middle East stocks

Gulf Today Report

Morgan Stanley analysts have forecast an influx of $82 billion in foreign funds into Middle Eastern stock markets as the region continues to sharply outperform international stock markets this year, Bloomberg has reported.

Flows are set to rebound as global emerging market funds increase and gain their weight in MSCI's scale of developing country stocks, according to analysts.

Shares listed in the Arab Gulf rose this year, tracking commodity prices.

Morgan Stanley raised Qatar's rating to "active", noting that the country is benefiting from the gas market and hosting the 2022 World Cup, which begins later this year.

Morgan Stanley analysts also gave the UAE, Saudi Arabia and Kuwait markets an "active" rating, and said that there are fundamental, structural and technical reasons for the continued activity of Middle East stocks, including high energy prices and ongoing reforms, and it is currently the preferred choice for investors in the Eastern Europe, Middle East and Africa region.