The Middle East and North Africa is a region consisting of Arab countries. It includes countries from morocco to Iran. It consists all Middle Eastern countries from east to west. Arab countries included in this region are Palestine, Saudi Arabia, Yemen, Iran, Jordan and others. Because of Arab countries involvement, MENA region is also known as the Arab world. It is a region with economic stability. It contains reserves of natural gas and petroleum in great quantity. Making investment as a businessman in this region is not a difficult task. Investment market in the Middle East and North Africa is very optimistic for businessmen.
Equity investment in this region is very challenging but optimistic. Investment activities in this region have developed during previous ten years. Investors are outperforming in the equity investment, investment banks, public markets and other investment companies. It is very challenging for investors to create a portfolio of their investments in this region. They invest in different countries of this region. Several years back, countries in this region were at their peak of investment and economy stability.
During the previous years, due to development in the investment industry, private equity investment was very attractive for businessmen all around the world. This situation was built due to several economic reforms by the government, young people association for business and growing wealth.
Current investment condition
Investment market of MENA region is at its initial stage as compared to other developed countries in the world. Economic stability is going be rise and GDP growth is leading to uplift the potential of the investment. Markets in this region are becoming mature in this modern era. This is the reason why people are investing in countries of this region. Foreign direct investments are made by companies locally and internationally. Private equity companies are attracting investors.
Securities market in MENA
Stock markets of different countries in MENA region are growing significantly. Several companies are listed on the stock markets of countries and are developed due to total market capitalization. The number of listed companies are increased in Dubai stock exchange during 2004-10. But this has not lead the growth in total market capitalization of Dubai stock exchange.
Private sector in MENA
Many largest companies in the Middle East and North Africa region are not listed in stock markets. Companies of Bahrain, Libya, Kuwait, Egypt, Saudi Arabia and some other countries are not included in the stock market listing. The business environment of MENA region is different as compared to other countries in the world. This environment is different due to distinguishable characteristics of family-owned enterprises, state-owned enterprises and small and medium enterprises in the Middle East and North Africa region.
So, making an investment in MENA region is difficult and challenging. The investment and market is growing gradually in this region. However, it is still behind the other developed economies of the world. Many largest FDIs around the world invest in this region including oil producing companies.