Kuwaiti funds witnessed a 6.55% drop in AUM in the first three quarters of 2011 as outflows outpaced inflows, writes Zawya researcher Celine Salloum.
By Celine Salloum, Research Associate, Zawya
Year 2011 has been tough on investors. The nuclear disaster inJapan
In response to the turmoil, Gulf countries have announced USD 150 billion worth of social welfare spending in the region since the unrest began, according to an economic note by Jean-Michel Saliba of Bank of America Merrill Lynch, who estimates that “the extra GCC spending pledges of intra-regional fiscal transfers to less endowed members total … 12.8% of GDP, while 2011 appropriations could reach 4.9% of GDP, supporting growth.”
Investment funds in the GCC region are characterized by an evolving market. Until the global crisis, the GCC markets had registered robust growth driven by record commodity prices and liquidity in the market. However, the financial crisis resulted in a reversal of fortunes with declining oil prices, a liquidity crunch and a free-falling stock market, further accentuated by theDubai
Covering a geographic area of about 17,820 square meters,Kuwait , the second largest regional market in terms of market capitalization after Saudi Arabia
According to Zawya Funds Monitor, there are 112 funds domiciled inKuwait
Zawya’s statistics show a net funds outflow of USD 2.62 million between Q4-2010 and Q1-2011. The trend accelerated and ended Q2-2011 with a massive outflow of USD 56.53 million.
Across the MENA region, 50 funds were launched in the year till the end of November, but none inKuwait
Kuwait
November 30, 2010 to November 30, 2011
Source: Zawya Funds Monitor
The Kuwait Stock Exchange’s price index concluded November 2011 at 5,811.60 points, down by 15.66% from 6,891 points registered in the same period last year.
For more information about MENA funds, please visit Zawya Funds Monitor.
By Celine Salloum, Research Associate, Zawya
Year 2011 has been tough on investors. The nuclear disaster in
In response to the turmoil, Gulf countries have announced USD 150 billion worth of social welfare spending in the region since the unrest began, according to an economic note by Jean-Michel Saliba of Bank of America Merrill Lynch, who estimates that “the extra GCC spending pledges of intra-regional fiscal transfers to less endowed members total … 12.8% of GDP, while 2011 appropriations could reach 4.9% of GDP, supporting growth.”
Investment funds in the GCC region are characterized by an evolving market. Until the global crisis, the GCC markets had registered robust growth driven by record commodity prices and liquidity in the market. However, the financial crisis resulted in a reversal of fortunes with declining oil prices, a liquidity crunch and a free-falling stock market, further accentuated by the
Covering a geographic area of about 17,820 square meters,
According to Zawya Funds Monitor, there are 112 funds domiciled in
Zawya’s statistics show a net funds outflow of USD 2.62 million between Q4-2010 and Q1-2011. The trend accelerated and ended Q2-2011 with a massive outflow of USD 56.53 million.
Across the MENA region, 50 funds were launched in the year till the end of November, but none in
November 30, 2010 to November 30, 2011
The Kuwait Stock Exchange’s price index concluded November 2011 at 5,811.60 points, down by 15.66% from 6,891 points registered in the same period last year.
For more information about MENA funds, please visit Zawya Funds Monitor.
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