Morgan Stanley fund shies away from banks in Saudi Arabia

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The head of Morgan Stanley’s Saudi Arabia Investment Management says the equity fund is heavy on domestic investments in agriculture, commodities, and petrochemicals, and light on banks.  Farhan Mahmood says there is a “dominant domestic theme prevailing in Saudi Arabia” which offers long-term potential for investments and investors.

The Morgan Stanley fund has already seen a 46% increase since 2009 as both demand for oil has been high and the government increases expenditures.  The fund does not see much future in loan growth in the region in the short term, so not investing in banks has helped keep the fund in the black.  A more cautious investment outlook seems to be necessary to ensure long-term growth in the Saudi Arabia economy.

 

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Reading Time: 1 minute

The head of Morgan Stanley’s Saudi Arabia Investment Management says the equity fund is heavy on domestic investments in agriculture, commodities, and petrochemicals, and light on banks.  Farhan Mahmood says there is a “dominant domestic theme prevailing in Saudi Arabia” which offers long-term potential for investments and investors.

Reading Time: 1 minute

The head of Morgan Stanley’s Saudi Arabia Investment Management says the equity fund is heavy on domestic investments in agriculture, commodities, and petrochemicals, and light on banks.  Farhan Mahmood says there is a “dominant domestic theme prevailing in Saudi Arabia” which offers long-term potential for investments and investors.

The Morgan Stanley fund has already seen a 46% increase since 2009 as both demand for oil has been high and the government increases expenditures.  The fund does not see much future in loan growth in the region in the short term, so not investing in banks has helped keep the fund in the black.  A more cautious investment outlook seems to be necessary to ensure long-term growth in the Saudi Arabia economy.

 

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