Investors to 'avoid capital markets'
- Middle East: Wednesday, November 26 - 2008 at 13:24
Large scale private investors will avoid putting their money into assets related to capital markets for the near future, delegates at a Dubai International Financial Centre (DIFC) Week panel forum on raising money have been told. Instead they will focus on investing in unlisted companies.
'Once the big money investors see stability returning to these markets they will come back and use the equity shortage that we currently see and invest heavily,' Philip Southwell, Deutsche Bank's Head of Global Banking Central and Eastern Europe, Middle East & Africa, told forum attendees.
Delegates also heard that current valuations present very attractive opportunities for those with access to liquidity.
Private investors are currently looking at buying into assets whose value are not reliant on capital markets.
Sameer Abdi, a Partner in Ernst & Young's Islamic Financial Services Group, said that this principal would feature more strongly than before in the short to medium term.
'Investors are going to invest in opportunities that don't hinge on the capital markets,' Abdi said, citing an example of clients who are looking to invest in majority shares in a publicly listed company in order to delist it from its local exchange.
'Whatever region you are in, you will see money coming back,' added Southwell. 'You will begin to see much less correlation between different global markets in the future.'
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