Asset managers in the Gulf countries expect an increased demand for Islamic, ESG-compliant investments, according to Moody's Investors Service.
And the agency indicated, on Monday, that the results of a survey that included senior investment officials in eight finance companies in the Gulf Cooperation Council countries, showed that half of the respondents from senior investment officials expected a growth in net flows in the next 12 months in the region.
The agency's vice president of credit, Vanessa Robert, said that half of the respondents expect a significant increase in net flows of more than 10%, and a third of them expect a modest increase.
In a statement, Vanessa indicated that improved investment results and stronger, already relatively higher fees in the Gulf region will further support revenue growth.
According to Moody's survey, 38% of respondents expect a significant increase in demand for investment products compliant with environmental, social and corporate governance, and half of the respondents expect sales of Islamic products to grow faster than sales of traditional investments in the next year.
The agency's survey also revealed that the increasing demand for Islamic products reflects the large number of Muslims in the region, and the industry's efforts to expand the range of Islamic investment options.
The Gulf countries, like the rest of the world, were subjected to a stifling crisis that hit their economy, due to the repercussions of the Corona crisis that struck the world more than a year and a half ago, in addition to the significant drop in oil prices, which is the main source of income for countries in the region.
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