Tuesday 4 September 2012

Citi: how to invest in petrostates | beyondbrics

Petrostates are often authoritarian, oil dependent, with indulged elites, and have low market liquidity. Want to invest?

Perhaps you should. According to a Citi research note, from equity analysts led by Kingsmill Bond, money is flowing into petrostates at a rate of nearly $2tn a year - “greater in real terms than they saw at the peak of the last oil boom”, prompting the question: Is this “the greatest peacetime transfer of wealth in history?”

Citi’s analysts identify a bunch of petrostates, many in the Middle East and Africa, and then whittle it down to eight investable ones on the basis of market liquidity: Russia, Saudi Arabia, Norway, Kazakhstan, Qatar, Kuwait, the UAE, and Nigeria. Only Norway is a developed market.

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