Doha, 10 October 2011

"Lively debate marks first time QFC hosts pre-eminent regional fund management event”

The 5th Annual MENA Investment Management Forum, sponsored by the Qatar Financial Centre Authority, completed on 6th October four successful days of wide-ranging and penetrating discussion on fund management in Qatar and the region. More than 250 delegates from around the world attended the conference along with international and regional media.

The Forum was officially opened by H.E. Yousef Hussain Kamal, the Minister of Economy & Finance. He told delegates that Qatar has developed its natural resources well and was now engaged in developing its human resources. Qatar’s vision of becoming a knowledge-based economy was in line with HH the Emir’s Qatar National Vision 2030, he said, and the QFC was part of the government’s policy of diversification. Asset management was an example of that diversification and the development of a knowledge-based economy, he added.

During discussion at the conference three main trends emerged: the increasing importance in the world economy of emerging markets and their attractiveness to investors; the rise of MENA as a pool of wealth and centre for asset management; and the growing interest in, and sophistication of, Shari’a investments.

• Emerging markets. Many speakers said that the long term future of emerging markets looked positive especially compared with mature markets such as North America, Europe and Japan. Emerging markets had taken over as the engine of the world economy. They now had a clear track record and had shown resilience during the financial crisis. But there was disagreement on how far emerging markets and mature markets had converged. Some delegates argued that domestic trends were still dominant in emerging markets.
• MENA. Delegates agreed that countries such as Qatar, Saudi Arabia and the UAE were relatively unaffected by the current global economic uncertainties. Other countries such as those embroiled in the Arab Spring were likely to see curtailed growth. Overall, the Gulf region’s huge and growing pool of wealth was a great opportunity for fund managers in the region. There was general agreement that the regions’ investors were becoming more sophisticated and interested in a larger range of wealth management products and services, although opinions varied on how fast investors’ preferences would change. Some delegates called for unifying the rules governing asset management in the region to boost the industry.
• Shari’a investments. Conference sessions devoted to different aspects of Islamic wealth management were lively and well attended. Some of the discussion dealt with more specific aspects of Shari’a finance such as new Shari’a compliant investment strategies separate from the traditional asset classes of private equity and real estate. Other parts of the discussion were on subjects such as the extent to which conventional and Shari’a business could converge and whether Shari’a investment was an asset class of its own. Delegates accepted, however, that the evidence about demand for Shari’a investments was mixed and that some investors in the region were more comfortable with conventional investments.

Shashank Srivastava, Acting CEO of QFC Authority, said: “On behalf of the QFC Authority, I would like to thank all the participants for their contribution in making the MENA Investment Management Forum a success in its first year in Qatar. We greatly appreciate the increasing recognition of Qatar as the preeminent hub for asset management in the region.”

Yousuf Al-Jaida, Director, Strategic Development – Asset Management and Banking, QFC Authority, said: “The success of the MENA Investment Management Conference 2011 provides momentum to our strategy of building Qatar as a regional hub for asset management, advancing our national objective of diversifying our economy and establishing a knowledge-based economy. Such a large gathering of leading industry experts is further evidence that Qatar is emerging as a major force in asset management, not just as a source of funds but as a highly attractive, well-regulated environment.”

Notes to the Editors

It was the first time this flagship conference, previously known as FundForum Middle East, had come to Qatar. The organisers, ICBI, launched FundForum Middle East in 2007 as a regional partner to the FundForum International conference, which has been running for 20 years.  Over the last four years the summit and convention has attracted leading financial and investment experts from firms across the GCC.  It is the premier event for the asset management industry.

When the first FundForum Middle East was held in 2007 regional onshore assets under management were estimated at US$57 billion, with much of the management undertaken by international companies.  With the repatriation of funds and the growth in the regional investment management providers, assets under management are expected to be over US$100 billion by 2012 (Cerulli Associates).  ICBI has recognised that Qatar with its world class financial infrastructure is at the centre of this growth, which was a key driver for moving the forum to Doha.