Key sectors to invest in within Middle East

Dubai: Emirates NBD’s Wealth Management division has identified the real estate/construction sector as the most attractive to invest in within the region’s equity markets, particularly in the UAE and Qatar.

“Favourable supply and demand dynamic, attractive investment yields, government spend on infrastructure, increasing tourism revenues are making this sector very attractive,” said Anita Gupta, equity strategist at Emirate NBD Wealth Management.

Strengthening asset quality, improving economic indicators and high dividend yield makes the banking sector attractive. Data-driven revenue growth, strong cash flows and high dividend yields make the telecom sector a strong investment option.

In fixed income, regional credit markets are outperforming emerging market peers. Relatively low supply, high yields and dollar-denominated issuances make GCC debt attractive to global investors.

With most GCC currencies pegged to the US dollar, GCC local currency debts are equally attractive as dollar-denominated debt as they are not subject to currency volatility as is the case with most emerging market credit.