{"id":581455,"date":"2023-02-14T00:00:00","date_gmt":"2023-02-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/14\/imf-praises-gulf-economies-on-move-away-from-oil-gcc-equities-left-out-of-em-tear\/"},"modified":"2023-02-14T00:00:00","modified_gmt":"2023-02-14T00:00:00","slug":"imf-praises-gulf-economies-on-move-away-from-oil-gcc-equities-left-out-of-em-tear","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/14\/imf-praises-gulf-economies-on-move-away-from-oil-gcc-equities-left-out-of-em-tear\/","title":{"rendered":"IMF praises Gulf economies on move away from oil + GCC equities left out of EM tear"},"content":{"rendered":"

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<\/span>IMF gives the Gulf tub-tubs on battling its oil dependency: <\/span>Oil-producing Gulf <\/span>countries have been successful in diversifying their economies by advancing private investments and collecting more taxes, IMF chief Kristalina Georgieva said during the World Government Summit in Dubai, <\/span>Bloomberg<\/a><\/span>reports. Georgieva dismissed the \u201cimpression\u201d that Gulf nations were only progressing due to higher oil and gas prices in recent years. \u201cThey have been reforming relentlessly how they raise money and how they spend money,\u201d she said. <\/span><\/p>\n

Gulf stocks have been MIA from the <\/span>EM equities rally: <\/span>Declining oil prices, a weaker <\/span>USD, and China\u2019s reemergence from covid lockdowns have left Gulf equities lagging behind amid a surge in emerging-market stocks, <\/span>Bloomberg<\/a><\/span> reports. <\/span>MSCI\u2019s EM Index is up 20% since November, while its gauge of GCC equities is down 10% \u2014 marking a stark turnaround from recent years, when growth in Gulf stocks far outpaced the majority of EMs. An <\/span>Adani-related<\/a><\/span> drag on Abu Dhabi stocks isn\u2019t helping matters, Tellimer strategist Hasnain Malik told Bloomberg. Gulf stocks are expected to continue to underperform through this quarter at least. <\/span><\/p>\n

US equity funds aren\u2019t too popular right now, either: <\/span>US funds<\/span> have seen some USD <\/span>31 bn in outflows since the start of the year \u2014 their worst start to any year since 2016, according to Refinitiv data cited by the <\/span>Wall Street Journal<\/a><\/span>. In parallel, investors have poured some USD 12 bn into international equity funds. The data suggests that confidence is low among investors that the recent US stock rebound is here to stay, the WSJ writes. \u201cThe sense of [potential] certainly lies elsewhere,\u201d one researcher said.<\/span><\/p>\n

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