Arqaam seeks profit in hidden gems

The quality and depth of research on Middle Eastern companies has improved markedly over the past few years, based on improved financial reporting and better-regulated stock exchanges. But many smaller companies in the region remain unexamined by the investment community.

Arqaam Capital, an ambitious Dubai-based brokerage and investment bank, is hoping to change that by developing a research function in Beirut, the Lebanese capital. It says there are 306 companies based in the Middle East, north Africa and Turkey with a market capitalisation of more than $500m, most of which are operating under the radar.

Riad Meliti, Arqaam’s Libyan-American founder and chief executive, says currently only the top 100 companies in the region, including Turkey, are covered and that Beirut provides the pool of skilled labour necessary to staff such a large-scale exercise. The plan is for the new Arqaam operation eventually to employ 100 professionals.