Expectations re GCC asset valuation after the British exit

2016/06/26 | 07:01

Direct: Analysts for "direct" that the central banks' investment and portfolio investment assets Gulf to re-evaluate and take the necessary measures to mitigate the effects of the referendum, which the majority of voters in Britain chose it out of the European Union.

He was quoted by the Saudi Press Agency on the governor of the Saudi Monetary Agency Ahmed bin Abdul Karim Al-Khulaifi as saying that the Kingdom has conducted adjustments to assets denominated in pounds sterling and the euro before the announcement of the referendum result as they were monitoring the situation and proceeded to move "as a hedge against what might be the impact on financial markets." UAE Central Bank, said that there is a limited correlation between the financial system in the UAE and the financial system in the United Kingdom, noting that it would continue to monitor developments that could affect the local economy as a result of the vote ..

According to the Emirati news agency. The Bank for International Settlements said in a statement on its website on Saturday that the world's central banks are ready to cooperate to support financial stability in the wake of Britain vote out of the Union.

The Variety Financial Advisors Rami Alsehada predicted economic adviser to the Gulf Cooperation Council (GCC) with a number of measures on the export level of long-term review of contracts with Britain and the re-evaluation of those contracts, according to reach his negotiations with trading partners, as well as the price difference resulting in favor of the Gulf of decline pound on imports.

For his part, financial analyst Maitham person to mediate the Arab Gulf said that the most important investors in Britain and get out of the EU will be affected, especially with strong Turadjat the expected value of the euro and the pound sterling.

He warned the person that dropped the value of the euro may be affected by the decline of Britain from its obligations towards the EU and vice versa, and in this case there are expectations down the value of the single currency results in a direct reduction in the value of investments.

The euro fell at the end of last week against the dollar, 2.4% at $ 1.1112, after touching its lowest level against the greenback in the three-month sterling Ncef.otraja in trading last Friday's 7.37% against the dollar at $ 1.3765 after touching its lowest level since 1985.oofaqa to recent statistics of the Institute of sovereign funds on its website, the total Gulf investments in Britain of 115 billion pounds, equivalent to ($ 157 billion) are distributed in various areas including real estate, which accounts for 60 billion pounds on its own in addition to the investment capital markets and the banking sector.

The State of Saudi Arabia, Qatar and Kuwait of the leading investors in London, where Qatar has some of the real landmarks such as the Shard (the highest skyscraper in the European Union), and a series of Harrods, and the Olympic Village in London, as well as some luxury hotels, as Qatar was part of a coalition that It acquired the Canary Wharf financial district in 2015, and the Kuwait investment Authority manages assets of $ 592 billion, according to recent statistics of the Institute of sovereign wealth funds.

He said economic analyst Mohammad Aqeel The Gulf investments will not be affected much because the British economy is benefiting from the global financial position of its relations with the United States extended, which will keep the economy strong and solid even after coming out of the European Union.

Aqeel ruled out for the decline of the value of real estate that is the biggest haven for investment for most Klchian in the United Kingdom.

He pointed to a recent research unit Emirates NBD Bank report that the inter-trade operations between the United Kingdom and the Gulf states will not be affected as a result of the withdrawal of Britain from the European Union, Britain is the fifth in the world in terms of economy.

The report predicted that the new trade policy for Britain to be more effective and is outside the European Economic Union, even irreparable loss for the markets of Europe, the British Companies will be ambitious so dramatically to make its mark in the Gulf countries, specifically in the Emirate of Dubai, and in the event of withdrawal of the United Kingdom under the umbrella of Operation free trade agreement between Europe and the Gulf will strengthen and support the modern independent trade relations between Britain and the Gulf states.

She stressed the Abu Dhabi Financial Group in a recent report also said Britain will remain the point of prospective investors bays away from the result of the recent referendum.


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