Middle East's capital markets reporting record activity

The rapid emergence and development of regional bond and sukuk markets, and the flurry of initial public offerings (IPOs), demonstrate the high capacity and a new-found willingness to innovate, right across the region.

"Equity markets tend to be 'dividend plays' for investors who compare dividend rates with bank interest rates," says Brad Bourland, chief economist with SAMBA, who is speaking at MEED's Second Middle East Capital Markets Conference in Dubai on Tuesday 21st September.

"Thus, today's combination of high oil prices and low cost bank borrowing is driving regional bull markets," he adds.

The region's equity markets have been consistent global out-performers over the last three years, generating spectacular returns. Market analysts say strong corporate earnings are supporting the share price hikes and suggest there is room for further appreciation, citing the far-from stretched forward price-earnings multiples at which most markets are trading.

"GCC markets have had a staggering growth over the last several months, and Saudi Arabia's markets currently lead GCC markets for the first half of 2004, with an average return rate of 24%," says Dr. Nahed Taher, senior economist with Saudi-based National Commercial Bank.

A confirmed speaker at MEED's Second Middle East Capital Markets Conference in Dubai on Tuesday 21st September, Dr. Taher is set to address attendees on the issue of Middle East equity market performance, particularly as it relates to evaluating stock valuations in the region compared to other emerging and developed markets.

Other guest speakers include representatives from Standard Chartered Bank, EFG-Hermes, Emerging Markets Management, Gulf International Bank, HSBC, and Bank Muscat.

The exclusive lead event sponsor, Shuaa Capital, will put forward its head of research, Walid Shihabi, to present an in-depth analysis into the key investment opportunities across Middle East markets.

Also active in sponsoring the event are Bahrain Financial Harbour, Global Investment House, and Cadillac.