Gulf States

There are 2 posts tagged Gulf States (this is page 1 of 1).

Stock Market Stalled as Bahrain Protests Continue

Not only do regimes topple and heads of state crumble in response to massive demonstrations in the Middle East, but so too  does the equities market. As protests continue in Bahrain, political uncertainty is causing investors to step back and wait before taking risks on the purchase of stocks.

The Bourses will be open on Thursday in both Bahrain and Qatar but in other Gulf States the markets are scheduled to be closed either for the weekend or for a religious holiday.

Managing Partner of Dubai-based asset management company Frontlane Capital, Hashem Montasser commented on the poor reaction to the Egyptian crisis in the Gulf Region.

“Revolution in Egypt was shrugged off too easily by Gulf markets," he said. "Markets were mispriced in the sense that risk premiums have gone up, but equities prices didn't reflect that. Bahrain has become the catalyst to now re-price Gulf equities."

Calling the attack of an overnight encampment of protesters in a central square in Manama “real terrorism,” the leader of the main Shiite opposition bloc in Bahrain expressed his outrage, and also described seeing at least 50 armored cars traveling in the direction of Pearl Square in Manama.

Montasser added that, as far as investing is concerned, Bahrain has heightened risk for at least the next couple of months."

Jordan’s Hikma Growing this Year by $600 Million in Acquisitions

Said Darwazah, chief executive of the Jordan-based drug company Hikma Pharmaceuticals announced to the press that his company is planning on acquiring between $500 and $600 million in companies in the coming year in order to consolidate its place as the region’s number one business in this sector.

Hikma is a quickly growing multinational manufacturer of drugs which, although a leading company in the MENA (Middle East and North Africa) region has yet to tap into markets in Morocco and Syria in the Arab world, and Turkey and beyond  in the non-Arab world.  Hikma does have a foothold in the Gulf States in Saudi Arabia, but is looking to enlarge that market as well.

Darwazah explained that Hikma’s sales are ahead of all other regional manufacturers in the MENA, and that their growth in the MENA is by far exceeding the growth of sales in the more mature markets where it also deals.

That's why we are concentrating on growing the business more and more in the region with its young population and changing health patterns. Although Hikma has robust operations in the U.S. and Western Europe, MENA is still the crown jewel of the business," he said.