Resources and demographics driving frontier markets

Frontier regions of Africa and the Middle East are drawing investors' attention away from the more traditional emerging market economies

A frontier country can be described as an emerging economy with an underdeveloped equity market. Many frontier markets possess two factors that are crucial to their continued development. They are resource-rich, which promises continued accumulation of wealth and increasing stability to their economic balances. They also have attractive demographics which promise higher productivity, increased urbanisation and rising consumption of goods and services. Investors in frontier markets have been rewarded with excellent returns over the past eight years, especially when compared to develo...