UAE, Egypt are the largest overweight markets in MENA

UAE, Egypt are the largest overweight markets in MENA

A combination of economic recovery, strong policy and attractive valuations positions the UAE as one of largest overweight market in the region from an investment perspective. At a virtual seminar on Monday tilted: , Bassel Khatoun, managing director MENA, Franklin Templeton, said policymakers in the region have proven to be very effective in managing the virus. "A resilient economy, continuing reforms and an extensive COVID-19 vaccination programme leads us to maintain a favorable outlook on the UAE. A recovery in the residential real estate market coupled with expectations of a rebound in tourism also bodes well for equity prices,“ he added. Khatoun said the investment bank was overweight on Egypt as well, as the economy continued to grow in an environment where most economies contracted sharply. "Its currency has also remained largely stable supported by a combination of controlled inflation and solid international reserves. Although low liquidity has been a challenge for the market, strong fundamentals and increasingly attractive valuations contribute to support our positive view.“ With the global environment being supportive of healthy equity market returns, the MENA regional index has given exceptional returns of over 20 percent already this year. The case for continued outperformance in MENA is