Flip through the latest issue of Gulf Weekly.
A COMPREHENSIVE research project on 'Business Leadership in the Arab World' by Korn/Ferry International in the Middle East, has highlighted the changing nature of investment sentiment into and out of the Middle East.
The research, based on extensive discussions with business, social and government leaders identifies the unique flavour of Arab leadership, and is due to be published later this year.
Outside the region, major investors and funds are moving away from the traditional havens of the US and European economies in favour of greater returns and opportunities in China, Africa, Brazil, India and even the emerging economies of the old Soviet empire.
On the inward investment side, Arab business leaders see huge opportunities in the Middle East itself, fuelled by reconstruction in areas like Iraq and Lebanon and by high growth and renewal in countries such as Jordan, Egypt, Libya and other North African states.
Metin Mitchell, managing director MENA for Korn/Ferry International, who led the Business Leadership research said: "There is no doubt there has been a fundamental shift in thinking amongst prominent Arab business leaders, driven in part by the global economic downturn but also by the resilience of the emerging economies.
"India is favoured for its sophisticated banking infrastructure and political stability whilst increasing economic clout and ethnic or family links with many African states improve opportunities there.
"Brazil is perceived as a sleeping giant whose time has finally come and many believe Russia offers the largest potential despite complex entry requirements.
"What particularly came through from our interviews with Arab business leaders was the shift away from the US and Europe as the key investment destinations.
The balance of economic power is moving and the US is perceived by many as slow to change, whilst US companies are portrayed as reluctant to understand the opportunities available to them outside the US market.
Europe is considered too introspective, often stifled by the EU and by over regulation, typical of a mature market," said Mr Mitchell.
The findings are reinforced by institutional and retail investor figures for 2010 for the Middle East which show investment time horizons shortening to between 1-3 years with only a minority of institutional investors considering a five-year span. In addition, the external market focus has changed dramatically, for example among GCC based Arab investors, the appetite for emerging markets investment was six times that for Europe and over twice that for the North American investment market.
