Barings is to launch a Dublin-domiciled Ucits III Middle East and North Africa (Mena) fund.
The vehicle launches on 29 March and will be managed by head of Europe, Middle East and Africa equities Ghadir Abu Leil-Cooper and her team.
The fund will focus on sectors Leil-Cooper says stand to grow considerably, such as banking, consumption, infrastructure, resources and property.
Benchmarked against the MSCI Arabian ex Saudi Arabia index, the fund offers exposure to Egypt (29%), UAE (20%), Quatar (16%), Turkey (12%), Saudi Arabia (10%), Kuwait (7%), Jordan (4%) and Oman (2%). It is overweight Turkey and Egypt and has a large underweight in Kuwait.
“We believe the long-term investment case for the region is compelling,” Leil-Cooper says.
“It offers strong long-term growth prospects as resource-rich countries benefit from the continued global demand for energy.
“This young and growing population ensures oil and gas are not the whole story, with sectors such as financial services and tourism also experiencing strong growth. Egypt has a population of 78 million with 70% of those under 30 years of age, while the population of Mena is expected to grow by 40% over the next two decades.
“All those stories about infrastructure are not only true but have to happen. You need roads, railways, hospitals and universities and that creates excellent opportunities for investors.”
