In a recent report, it is found that the Asset Manager Duet Group CEO is bullish and optimistic about investing in Saudi Arabia Stocks. Recently, Saudi Arabia has announced that it is going to create a huge international business zone. This business zone will have its own rules for administration, taxes and workers.
The idea of creating a huge business zone in Saudi Arabia is going to have the part of its ongoing efforts to rely less on selling oil.
Table of Contents
- Investing in Saudi Arabia
- The CEO’s Favorite Picks in Saudi Arabia
- Healthcare Sector
- Petrochemicals
- Mlouka’s Approach
Investing in Saudi Arabia
On Tuesday, Saudi Arabia said it plans to make this business zone. The business zone will connect Jordan and Egypt. This move is the biggest step so far in Saudi Arabia’s push to not depend so much on money from selling oil.
This announcement was made during an international business event that took place in Riyadh. More than 3,500 people from 88 different countries have attended the event. This move is said to be a Future Investment Initiative, aiming to show that Saudi Arabia, the world’s top oil seller, is also a great place for global investments.
The CEO’s Favorite Picks in Saudi Arabia
Coming back to the Asset Management Duet Group, the CEO of the group has revealed his favorite pics on Saudi Arabia Stocks.
Hedi Ben Mlouka, a fund manager at Duet Group, thinks Saudi stocks look good for future investments. He shared this view in an interview with Bloomberg Markets on January 16. Mlouka, who heads Duet Group managing about $5.5 billion, has made a suggestion to focus on long-term investments in the Saudi Arabia, especially those linked to the National Transformation Program (NTP).
Healthcare Sector
Healthcare, which had a tough time last year, is expected to improve this year. The sector is being privatized as part of the NTP program. Mlouka envisions a potential growth in Saudi Arabia’s healthcare sector and expects to benefit from the NTP. He also predicts short-term gains in the next 12-18 months.
Petrochemicals
Mlouka also likes to look at the growth in existing petrochemical industry in Saudi Arabia. With oil and coal prices going up in 2017, he thinks petrochemical companies in the country will make more money.
He suggests investing in SABIC, a big Saudi company with exciting plans for expansion in the US. If oil prices keep rising, Saudi petrochemical firms could see better profits in the coming years.
Mlouka’s Approach
While others are focusing on Oman or the UAE because of better liquidity with rising oil prices, Mlouka has a different approach. He believes Tunisia is a good choice this year. Tunisia’s economy is getting better, and the security situation has improved a lot.
Though Tunisia’s market is small, Mlouka sees big potential there, especially with banks getting stronger. As of January 19, Tunisia’s main stock index has gone up by 2.5% in the past month.
