Middle East wakes up to exchange traded funds

There is a growing awareness for Exchange Traded Funds (ETFs) in the Middle East and the region's exchanges are waking up to the idea of launching them here, a top official of Barclays Global Investors said.

"Many of the exchanges in the GCC have talked about introducing an ETF. I have moved around the region and have discussed the issue. Some of the investors here, including the private banks, are telling us that the only products they are using now are ETFs," says Deborah Fuhr, Managing Director and global head of implementation strategy with Barclays Global Investors (BGI).

However, the region does not have an ETF now. And investors wanting to trade in it need to register in foreign waters. Fuhr said that countries need to put in essential regulations in place in their stock markets and establish essential benchmarks prior to launching ETFs.