Europe crisis turning boon for Qatar, Abu Dhabi

Qatar, the world’s fastest growing economy, and Abu Dhabi have emerged as favorite investment destinations for the investors in the wake of rising possibility of financial trouble in the West and the United States. The average yield on Gulf bonds declined to 4.719% on Monday. The yield was declined to its lowest level on August 12, 2010.

Sergey Dergachev, who oversees $8.5bn in emerging-market debt at Union Investment Privatfonds in Frankfurt, said, “I have started in the last three weeks to reduce my exposure to Eastern European countries” and buy into “fundamentally strong countries with solid public finances.”

Data compiled by JPMorgan Chase & Co claimed that yield on Qatar’s sovereign dollar-denominated bonds touched record-lows last week. The yield on Qatar’s 6.55% sovereign bonds declined 0.03 per cent touching 3.529% on Thursday.

Analysts believe that the Qatari economy may expand 20% this year after growing 16% in 2010. The rise in economy would be due to significant increase in natural gas export.

Daniel Broby, the London-based chief investment officer at the Silk Invest Ltd, “Investors will continue to overweight emerging markets in general, and the Middle East and North Africa in particular, given the weaker fiscal positions in developed markets.” (IANS)