The uprising in the Middle East has been well documented by the media, but what does this mean for investors in the region? Joe McGrath investigates.

First published:
What Investment

Date of publication:
1 April 2011

Journalist:
Joe McGrath

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Protests and civil unrest across the Middle East & North Africa (MENA) region continue to grab the headlines of the world’s media.

For investors, it has been difficult to make a call on the likely outcome of the region’s events because identifying the future political landscape in each affected country is exceptionally difficult.

And it would appear that fund managers are finding it just as tricky to make a call on how portfolios should be revised to maximise opportunities arising from the crisis, with most resorting to locking down their portfolio’s holdings and hoping for the best.

There are vast differences in the approaches adopted by competing fund houses, but the common factor for anyone looking at this market right now is that it is exceptionally high risk.

Broadly speaking, investors that still have one eye on the MENA region are either already invested or are happy to take the immediate risk in exchange for gains in the ultra-long term future.

For those that fall into the latter bracket, there are quite a few vehicles that offer a little exposure to the region among Investment Management Association-listed funds, but only five funds that focus specifically on the Middle East region.

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