Arab stocks ready to outperform as oil advances

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Stocks in the oil-rich Middle East may gain more than global equities, after the MSCI Arabian Markets Index entered a 12-month “outperformance phase,” fueled by higher crude oil prices, according to Abu Dhabi Investment Co (ADIC).

“People who want to play the oil story should definitely focus on the Arabian markets,” said Aksel Kibar, a portfolio manager at Abu Dhabi Investment. “Relative performance charts indicate that this outperformance may last for another 12 months.”

The MSCI Arabian Markets’ relative performance oscillator, which tracks the performance of the gauge relative to world equity markets, shows that the region’s 11 biggest markets will outperform as oil may surge as much as 30% in the second-half of this year, Kibar said.