ESG funds on the radar for MENA based investors – Saudi Gazette

ESG funds on the radar for MENA based investors – Saudi Gazette

DUBAI - The performance of environmental, social and governance (ESG) funds during the COVID-19 pandemic and their alignment with government visions in the GCC make them a compelling choice for investors in the Middle East, according to Aberdeen Standard Investments (ASI).In the first quarter of this year, the COVID-19 pandemic prompted the most severe stock-market crash since the global financial crisis.. Middle East & Africa for ASI, said: "This is significant because the COVID-19 pandemic is by far the biggest market crisis that many ESG funds have faced.. Most dedicated ESG strategies were launched after the 2008 financial crisis and so have been beneficiaries of the long bull market that persisted for more than a decade thereafter.". The effect is particularly pronounced when markets have been especially turbulent - as in 2008, 2009, 2015 and 2018."Where ESG funds should demonstrate their potential more significantly is once the first phase of the economic recovery is complete.. By identifying the companies, the managers of ESG strategies can offer investors the prospect of investing in a better and more sustainable future.".