UAE financial markets will miss out on an upgrade to emerging status again this year, as investors wait for deeper changes to the indexes' rules, predicts Mark Mobius, the manager of the Franklin Templeton frontier market fund.
MSCI, a provider of investment decision support tools, is due to review the current "frontier market" status of the UAE and Qatar in June. It will be the fourth time the two countries attempt reclassification, after both failed to meet "emerging market" criteria in December.
Mr Mobius, who has five UAE and Qatari companies among his top 10 holdings in the world's largest frontier-market fund, said that regional stability kept niche investors interested in local markets but that the broader investment available to MSCI-rated emerging countries would disappoint again this year.
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