The Case for Value Investing in the Middle East

The Case for Value Investing in the Middle East
By Mark Hirschey (Work of Mark Hirschey) [<a href="">CC BY-SA 2.0</a>], <a href="">via Wikimedia Commons</a>

The Case for Value Investing in the Middle East

The Middle East is an unusual emerging market. It attracts investors with its oil wealth (+40% of the world’s proven oil reserves). Its consumer and competitive dynamics are fairly stableand predictable. And it has a +70-year history of successful deals with Western partners. All of these things make it particularly attractive and manageable for global value players.

But the number of companies inthe region – and deals – is quite small. Especially when compared with the large amount of local capital. So stocks and public bids attract too much money. And attractive private deals are hard to access. Typically, the biggest challenges for the MENA investor are deal access and valuation.

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