04/12/2024
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04/12/2024
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KUWAIT CITY, Dec 4: Reaffirming its leadership in asset management and investment banking in the region, Kuwait Financial Centre “Markaz” organized its annual seminar titled "Markaz 2025 Outlook: Investment Trends and Opportunities”. The event took place on December 4, at the Four Seasons Hotel Kuwait, featuring insights from Markaz experts alongside leading financial experts from the United States and Europe. They presented the latest trends across various sectors and shaped perspectives on opportunities in both regional and global markets. Celebrating 50 years of industry leadership in 2024, the event reflected Markaz’s legacy of delivering innovative financial solutions, empowering investors with insights, and guiding them throughout their investment journey.
The event included panel discussions on GCC equity markets, the real estate sector, fixed income, private credit, and related investment opportunities. Attendees also benefited from presentations covering overviews on global and regional markets, private markets, and the role of investment banking in enabling value creation in the market.
While the discussions were led by experts from renowned global institutions, the event highlighted Markaz’s commitment to supporting investors with the tools and guidance they need to navigate complex investment landscapes confidently, backed by the expertise of a trusted partner.
Ali H. Khalil, CEO of Markaz, remarked, “Our annual outlook seminar reflects our commitment as a partner in wealth creation to supporting investors amidst the ever-changing financial and economic landscape and keeping them informed of market developments. The participation of Markaz experts and renowned global financial leaders facilitates the delivery of strategic insights and in-depth perspectives to identify emerging investment opportunities and provide our clients with access to these opportunities through Markaz. Over the past 50 years, we have adopted balanced risk-return investment strategies and research-driven decision-making approach, driven by the expertise of our dedicated team, to create innovative investment solutions. We look forward to offering more opportunities that meet our clients' investment objectives in 2025."
Abdullatif Al Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated, “At Markaz, our clients are the cornerstone of everything we do. By providing timely insights and actionable strategies, we help them seize valuable opportunities. We are dedicated to understanding their unique goals and delivering bespoke solutions that align with their aspirations. As their trusted partner in wealth creation, we leverage our advisory expertise to provide tailored professional guidance and focus on building enduring relationships through innovation and expertise."
Global Market Overview
The seminar featured a presentation by Mr. Giovanni Leonardo, CFA, Head of Investment Management and Executive Board Member at Schroder & Co Bank AG, titled “Market Overview: Global economic landscape”. He provided attendees with insights into anticipated economic trends and policy shifts for 2025 and shed light on critical factors, including interest rates, geopolitical challenges, valuations and technology trends.
GCC Markets Perspective
Mr. Mohammad F. Alsumaie, Assistant Vice President of Wealth Management and Business Development at Markaz, shared insights on the GCC markets, emphasizing the key drivers of regional growth in 2025 and the factors that position GCC countries as attractive investment destinations. These drivers include robust economic growth rates, a strategic focus on economic diversification, a young and dynamic demographic profile, and the stability of the region’s banking sector, currencies, and financial reserves.
The first panel discussion, titled “GCC Markets Outlook 2025: Real Estate, Equities, and Fixed Income” explored key trends in the GCC markets, with key focus on equities, real estate and fixed income sectors, highlighting the outlook and the emerging opportunities.
Mr. Fahad S. Al-Rushaid, Senior Vice President of MENA Equities at Markaz, shed light on the GCC markets, stating: “We have a positive outlook for the stock markets, given the clarity on interest rates and controlled inflation levels. In the region, we expect continued economic growth in most GCC markets, with Saudi Arabia experiencing a boom that began in previous years. Banks are currently achieving double-digit growth in their lending portfolios, which is a very important indicator for the markets. The UAE economy is expected to grow by over 3.5%. We have also seen several IPO announcements in Saudi Arabia and the GCC, adding more depth to the markets and allowing us to be more selective in stock picking. Our investment strategies aim to capitalize on the positive performance of the region’s markets to deliver solid distributions with risk-adjusted returns.”
Ms. Rasha Othman, Executive Vice President of Investment Banking (Fixed Income & Capital Markets) at Markaz, said: “Fixed income typically depends on two key factors—interest rates and economic growth which in turn affects the credit risk of bonds. We expect a slower pace of interest rate cuts, which will positively impact fixed income. We have also seen an upgrade in the credit ratings of Saudi Arabia and Oman, and we expect continued economic growth. Under these conditions, active management of investments is crucial. We focus on the medium-term for bonds with strong credit ratings and aim to seize the right opportunities to meet investors' needs.”
Commenting on the real estate sector in the region, Mr. Khaled Ahmed Al-Mubaraki, Senior Vice President of Real Estate Investment for MENA at Markaz, said: “There are several factors that will reshape the real estate sector in 2025, including the mortgage law, the real estate developer law, land taxation, and private housing regulations. These factors will influence supply and demand trends. We expect the investment and commercial sectors to grow, while the residential sector will continue to experience correction. Companies will benefit from the BOT projects launched by the government, and individuals can capitalize on the rising demand in both the investment and commercial sectors. At Markaz, we are focused on seizing these opportunities for the benefit of investors, and on providing advisory services that align with their investment goals.”
Private Markets and Credit Trends and Opportunities
Sheikh Humoud Salah Al Sabah, Vice President of Investment Advisory at Markaz, delivered a presentation titled “Opportunities in Private Markets” emphasizing key factors driving growth in this segment. He pointed out that Markaz is a pioneer in the private markets sector and has a long history of providing innovative solutions in this sector.
Another session, “Assessing Risk, Opportunities, and Returns in Private Credit,” featured an esteemed panel of industry leaders to explore the strategies to navigate risks and maximize returns in private credit markets.
Mr. Lawrence Golub, Chief Executive Officer at Golub Capital stated: “One of the ways to control risk in direct lending is to run a strong business with sustainable competitive advantages that enable you to deliver consistent premium returns over long periods of time. We have built our business over 30 years to incorporate these competitive advantages that make the private equity firms and companies that want to borrow from us willing to work with us in a way where we can have great selectivity and pick companies that have greater resiliency in all market environments.”
In addition, Mr. Jean Christophe Rey, Head of International Private Credit Strategy at Blackrock EMEA highlighted: “We believe market forces, technology, and regulation are consistently moving financial activity to where it can be done most efficiently, making private credit a structural growth segment. BlackRock expects the private debt market will more than double to $4.5 trillion by 2030. The duration, returns, and yield characteristics of private credit match the needs of clients with long-dated capital, including insurance companies, pensions, sovereign wealth funds, wealth managers, and other qualified investors saving for retirement.”.
Commenting on his participation, Mr. Joost de Pauw, Partner of European Direct Lending at Ares Management said: “I was very pleased to take part in the panel discussion about private credit at Markaz’s 2025 Outlook seminar. There is continued interest in the private credit asset class, and it was enjoyable to discuss the current state and attractive outlook of the European Direct Lending market.”
Reflecting Markaz’s strategy, Sheikh Humoud Salah Al Sabah emphasized the importance of manager selection and diversification to successfully navigate market cycles.
The panel was moderated by Mr. Kashish Tandon, Executive Vice President of Investment Advisory at Markaz, and his key takeaway for investors is: “Private credit will always play an important role as core allocation in a well-diversified investment portfolio and will continue to offer durable premium over traditional fixed income.”
Investment Banking Insights
In the realm of investment banking at Markaz, Ms. Fay Al-Bader, Assistant Manager of Investment Banking (Advisory and M&A) at Markaz, and Ms. Wadha Al Hajraf, Analyst of Investment Banking (Capital Markets) at Markaz, delivered a presentation titled “Enabling Value Creation and Regional Prosperity”, highlighting the roles of governments, the private sector, individuals, and international investors in fostering a robust financial ecosystem. They also emphasized the strategic role that investment banking institutions play in driving development and growth within the financial sector.
Expertise and legacy over 50 years
The seminar highlighted Markaz’s pivotal role in supporting businesses by providing tailored financial solutions to help them build a foundation for sustainable growth. With a focus on key solutions essential for the investment journey, Markaz showcased offerings that are designed to address every stage of wealth creation. The event also reinforced Markaz’s strategic direction for 2025, anchored in its 50-year legacy of trust, reliability, and expertise. The "Markaz Outlook for 2025" conference serves as a key platform for knowledge exchange within the financial community, fostering the sharing of expertise, insights, and anticipated opportunities. This reinforces Markaz’s role as the partner in wealth creation.
