Arab Stocks May Outperform Developed Markets, EFG’s CEO Says

Arab stocks may outperform developed markets in the next 12 months because their economies have greater catalysts for growth as the credit crisis eases, the chief executive officer of EFG-Hermes Holding SAE said.

“Arab markets have less problems,” Yasser El-Mallawany, CEO of Egypt’s biggest investment bank, said in an interview at his office in Cairo yesterday. “They have a growing population and oil prices are still at $70, which is quite supportive for the Gulf. America still has consumer credit issues and Europe has the appreciation of the euro.”

The MSCI World Index of developed markets has jumped 21 percent this year compared with a 26 percent gain in the MSCI Arabian Markets Index. Egypt’s benchmark EGX30 Index has been the best performer among Arab markets, with a 47 percent surge. The MSCI Emerging Market Index has rallied 58 percent so far in 2009. Crude oil prices have gained 47 percent.