SICO Publishes Its Third Annual Investor Returns Requirements in the GCC Report, Mapping Investor Expectations and Regional Outlook
SICO’s CEO, Najla Al-Shirawi, commented on the report publication, saying, “As we tread through a period of global inflationary pressures and interest rate hikes, investors across the GCC are recalibrating their strategies. It is imperative that we continue to use the information we have accumulated to expertly assess these changing trends over time, linking it to economic indicators and ultimately translating it to investment products and solutions aligned with investor preferences and trends. We anticipate that the results of this report will serve as a tool for predicting expected returns and optimal valuation of any new offerings in both public and private markets.”
Based on the respondents’ expectation for listed equities, the range of returns required for Saudi Arabia, the UAE, and Qatar remained between 9-12% for 2024 versus 9-11% for 2023, while for Kuwait, Oman, and Bahrain’s return requirements moved significantly higher to range from 9-12% compared to 6-8% in the prior year.
Inflation remains the biggest concern across all GCC countries, followed by interest rates and recession. Logically, the three are interconnected, as inflation risks would imply higher rates for a longer period which could stifle growth and capex within the region triggering recession.To read the Investor Return Requirements in the GCC Report 2024, please visit sicobank.com.
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