London-based Ashmore Investments is set to open an office in Saudi Arabia before the opening of the Saudi Stock Exchange to foreign investors, the Wall Street Journal‘s Nicholas Parasie reports.
Ashmore, which is registered with the Saudi market regulator the Capital Markets Authority and based in Riyadh on Olaya Main Street, recently hired John Sfakianakis to join the group as it seeks to expand investment in the Middle East and especially Saudi Arabia.
“It’s an important step that demonstrates our conviction of the country’s potential for sustainable growth and economic well being,” Sfakianakis told SUSTG. “It also an essential move given the market’s depth, size, corporate transparency and regulatory environment.”
John Sfakianakis in Riyadh at the Council of Saudi Chambers building.
Parasie in the Wall Street Journal quotes Ashmore’s CEO, Mark Coombs as saying that Saudi Arabia’s “young but significant asset management market will continue to grow at an impressive rate.”
Coombs is a seasoned London investor that reached an individual net worth of above $1b in 2006. He has served as CEO since December 1998. Coombs also serves as Co-Chair of EMTA, the trade association for Emerging Markets, according to the Ashmore website.
In the firm’s recent weekly report, co-authored by Sfakianakis with Jan Dehn, the Emerging Markets investment manager tackles the impact of the recent fall in oil prices on the Middle East and how the region will fare as a result. “The short answer is that differentiation is essential, because not all countries in the region feel the same revenue pinch. But the full answer is more complex. Oil importers, for example, are also affected.”
John Sfakianakis on Bloomberg TV this week. Click here to watch the interview.
“Starting with the oil exporters – Kuwait, Qatar, Saudi Arabia and the UAE are fiscally robust. Within this group, some require a higher break-even price (oil revenues minus annual expenditures) than others. For 2014, we estimate that Qatar has the lowest break-even price at USD 58 per barrel (Brent crude), followed by Kuwait at USD 68 per barrel, UAE at USD 86 per barrel and Saudi Arabia at USD 92 per barrel. Still, Saudi Arabia will sustain a respectable surplus in 2014.”
In comprising the report, Sfakianakis focuses his research on the Middle East, he told SUSTG, with Dehn focusing on other markets.
“Ashmore is the first dedicated emerging markets manager that has decided to open its first regional office in Riyadh,” Sfakianakis said. “We always take a long haul view when we look at markets and Saudi Arabia is fitting exceptionally well.”
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[Click here to read the full report from Ashmore]
