Investing in ETFs: GCC investors lack financial literacy - experts | ZAWYA MENA Edition
Exchange-traded funds (ETFs) based in the Gulf Cooperation Council (GCC) region remain “abysmally” low, but the growing appetite for diversified investments could help the market move forward next year, according to industry sources.
Since introduced in the market in the early 1990s, ETFs in the Gulf have so far accounted for only $285 million in value. Whereas, ETFs around the world hold trillions of dollars in assets.
As of this year, there are more than 6,900 ETFs around the world, with more than $7 trillion in assets from more than 400 providers, according to London-based ETFGI. Within the GCC region, Saudi Arabia accounts for just three ETFs, and each of which has assets less than $7 million. There are indeed other MENA ETFs with larger assets, but these are domiciled outside the region.
“The ETF landscape in the region has been slow off the mark. More needs to be done to tap into its potential,” wrote Seif Fikry, CEO, and Sherif Salem, CIO of Chimera Capital, in a note.
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