MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Benchmarks
On a country level we expect to see interest return to Qatar, now at a compelling 10%
discount to MENA, which may not be triggered in full until 2013 with improved earnings.
However, it is a theme worth buying through the last quarter of 2012 as the downside is
limited. Saudi Arabia and UAE also offer selective opportunities, often beyond the index
heavy-weights, as does Turkey. We also see selective opportunities in Egypt if the
market corrects to lower valuations than the levels at the end of October 2012, albeit with
higher expected volatility as political risk remains elevated but (in our opinion) overstated.
Risks remain from the geo-political tensions and concerns over succession planning in
several countries as well as residual concerns over global risk aversion infecting regional
markets. These risks have to be managed carefully and this again calls for selectivity in
investment.
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