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Investors urged to buy more Gulf stocks
Global investors should buy more stock in Gulf states and cut their holding of US shares as the world's biggest economy is slowing faster than expected, the manager of the world's largest fixed-income fund said.
- Bloomberg
- Published: 00:53 February 20, 2008
Dubai: Global investors should buy more stock in Gulf states and cut their holding of US shares as the world's biggest economy is slowing faster than expected, the manager of the world's largest fixed-income fund said.
"The average investor in the world is very under-exposed to the Gulf and the Middle East," Mohammad Al Erian, the co- chief executive officer of Pacific Investment Management, told a fixed-income conference in Kuwait on Tuesday.
"That will change" as investors rebalance their portfolios to boost the share of emerging market stocks, especially in countries where governments are increasing spending.
The six-members of the GCC produce about 20 per cent of the world's oil and earn over $1.2 billion per day from oil sales. The six countries have announced projects worth $1.6 trillion.
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