Interview: Invesco sees higher investor demand for Shariah-compliant ETFs in MENA

Interview: Invesco sees higher investor demand for Shariah-compliant ETFs in MENA

As ESG-related investment gathers pace, regulators in the region have an opportunity to develop measures for greater inclusion of ESG considerations in the financial industry.

Zawya spoke with Zainab Kufaishi, Head of Middle East and Africa and Senior Executive Officer (Dubai branch) at Invesco Asset Management, to discuss some of the most prominent ESG themes and the emerging investment trends in the region.

What are the key investment trends Invesco is seeing in the GCC/Middle East?

Like other regions, we continue to see interest in alternatives, including private credit and real estate, as well as emerging market equity and debt, and a renewed interest in thematics and ETFs.

The dynamics of the Ukraine-Russia conflict have given rise to high inflation and commodity supply shocks around the world, taking a toll on most global markets. Investors are turning to safe-haven assets including gold which is pushing gold prices upward - a trend we would typically see occur in a rising inflationary environment. Gold ETFs in particular have attracted record inflows as investors search for returns.

e have also seen more Shariah-compliant ETFs coming on the market in the past year, which has drawn the attention of regional investors in search of investments that align with faith-based