Low oil prices, geo-political instability and lower government expenditure are the three most important economic issues for the GCC region in 2016, according to the CFA Institute’s latest survey.
The global association of investment professionals announced the results of its sixth annual Middle East Societies Market Sentiment Survery ahead of the 2016 Middle East Investment Conference (MEIC).
MEIC will take place in Bahrain for the second time on April 13, 2016.
We reveal CFA’s top ten key findings from the survey:Â
1. The introduction of VAT will increase inflation rates across the GCC, according to 1/3 of respondents.
2. 63% of those surveyed said employment opportunities for finance professionals in the GCC will continue to decrease in 2016.
3. 32% said market conditions will lead to business consolidation for organisations
4. Low oil prices (71%), geo-political instability (44%) and lower government expenditure (45%) will be the most important economic issues over the next 12 months.
5. 54% expect further declines in the sovereign credit ratings of GCC countries.
6. Increased debt raising activities across the market are anticipated by 82% of respondents.
7. Equity markets in Bahrain and Saudi Arabia will be the most affected markets in the GCC, according to 64% of respondents.
8. About 30% of CFA professionals believe that investor confidence is as low as it was during 2008/09, the same as those who believe that the overall sentiment is currently more positive.
9. Almost all respondents (91%) believe that it is important for GCC nationals to undertake professional qualifications
10. The outlook for the Euro will continue to be negative over the course of 2016, according to 48% of respondents.
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