Title: MIDDLE EAST AND AFRICA ETF MARKET- GROWTH, TRENDS, COVID-19 IMPACT AND FORECASTS (2022-2027)

The Middle East and Africa ETF Market can be segmented by Management Type (Active Managed ETFs and Passively Managed ETFs). By ETF Type (Equity ETF, Fixed Income ETF, Commodity ETF, Currency ETF, Real Estate ETF and Other ETF). By Country ( Saudi Arabia, United Arab Emirates, Kuwait, Israel, South Africa, and Others)

Market Snapshot

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Study Period: 2018-2027
Base Year: 2021
CAGR: <9 %

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Market Overview

The ETF has proved to be most resilient during the most turbulent financial market due to the Covid-19 pandemic. The ETF model has proved to be a critical emergence in the faster more dynamic world of digital investing. Despite the pandemic, worldwide economic slow-down, and drastic lockdown measures the ETF market in the Middle East and Africa has shown a remarkable growth trajectory.

Although the global ETF market has a history of almost 30 years, the ETF market in the Middle East and Africa is still underdeveloped. Globally there are more than 7,000 ETFs traded with more than USD 7 trillion of ETF assets, the number of ETFs based on the Middle East and Africa assets is abysmally low with only a handful of locally-listed ETFs, and trading volumes are low. ETF has hardly taken off in the Middle East Market. The number of ETFs domiciled in the Middle East region is quite low. Saudi Arabia and Qatar have developed ETF market compared to other regions in Middle East but even, the number of ETFs domiciled in both countries are in single digit. However, the Middle East countries focused ETF’s that are domiciled outside the region is increasing. This reflects the interest of the foreign investors in the emerging market indices of Middle East region. Even-though the number of ETFs based on GCC assets, including those domiciled in the USA are quite low. The low asset size of ETFs domiciled in Saudi Arabia compared with ETFs domiciled outside Saudi markets shows the lack of interest for the funds. The awareness about the ETFs and the participation from retail investors are very low compared to other developed and emerging markets.

Scope of the Report

Exchange-Traded Fund(ETF) is the type of pooled investment that tracks the particular index, sector, commodity, or other assets. They can be purchased or sold in the stock exchanges like any other regular stock. A complete background analysis of the Middle East and Africa ETF market, which includes an assessment of the Middle East and Africa ETF market emerging trends by segments, significant changes in market dynamics, and market overview, is covered in the report. The Middle East and Africa ETF Market can be segmented by Management Type (Active Managed ETFs and Passively Managed ETFs). By ETF Type (Equity ETF, Fixed Income ETF, Commodity ETF, Currency ETF, Real Estate ETF and Other ETF). By Country ( Saudi Arabia, United Arab Emirates, Kuwait, Israel, South Africa, and Others)

By ETF Type
Equity ETF
Fixed Income ETF
Commodity ETF
Real Estate ETF
Currency ETF
Other ETFs
By Management Type
Actively Managed ETF
Passively Managed ETF
By Country
Saudi Arabia
United Arab Emirates
Kuwait
Israel
South Africa
Rest of MENA

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Key Market Trends

The number of ETF’s Domiciled in Middle East is Quite Low

The ETF market in the Middle East has not taken off owing to various reasons such as lack of financial literacy and investor participation in the Capital Market. Similarly, long-term institutional investors like pension funds, university endowments, and sovereign wealth funds, do not have a targeted allocation to regional equity markets. In addition, there is a lack of regulations around authorized investment advisors, who advise clients on an optimal asset allocation to meet their investment needs. The number of local ETFs is increasing steadily since 2018 and will continue to grow in future

Total Net Asset for ETFs in MENA Region (In USD Million)

The Total Net Asset of MENA ETF’s domiciled Internationally is higher than GCC Domiciled

With the economies reviving after the COVID-19 pandemic, the roll-out of vaccines looking imminent, the ETF market in MENA is expected to bounce in coming years. There is the possibility of investors moving away from US investments and instead of looking to international markets, the Middle East is reasserting itself and opening up to foreign investment which will further increase the MENA ETF’s domiciled in the region or outside.

MENA ETF Market

Competitive Landscape

There are very few numbers of players offering ETFs in the Middle East and Africa Market. Numbers of Foreign players have also entered the market with ETFs focused in the MENA but domiciled in the other regions such as America and Europe. Loca Players include Al Biland, Alinma Investment, Al Rayan Investment. Other Foreign Players include Blackrock, Invesco, Franklin Templeton, Xtrackers, etc

Recent Development

  • In December 2021, Saudi Arabia’s Capital Market Authority has approved the request of Albilad Investment Company to offer and register the units of Albilad MSCI US Equity ETF on the Saudi Stock Exchange (Tadawul) as an exchange-traded fund (ETF). It provides the opportunity for investors to access the US market by trading the fund’s units in the local market and tracking important Indices in the US.
  • In February 2022, Chimera Capital LLC has launched an exchange-traded fund that will allow Abu Dhabi-based investors to track Kuwaiti stocks and it tracks the S&P Kuwait Shariah liquid 35/20 capped index.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Driver

    3. 4.3 Market Restraints

    4. 4.4 Insight on Technologial Adoption in the Market

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insight on Various Government Regulations in the Market

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By ETF Type

      1. 5.1.1 Equity ETF

      2. 5.1.2 Fixed Income ETF

      3. 5.1.3 Commodity ETF

      4. 5.1.4 Real Estate ETF

      5. 5.1.5 Currency ETF

      6. 5.1.6 Other ETFs

    2. 5.2 By Management Type

      1. 5.2.1 Actively Managed ETF

      2. 5.2.2 Passively Managed ETF

    3. 5.3 By Country

      1. 5.3.1 Saudi Arabia

      2. 5.3.2 United Arab Emirates

      3. 5.3.3 Kuwait

      4. 5.3.4 Israel

      5. 5.3.5 South Africa

      6. 5.3.6 Rest of MENA

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Al Bilad Capital

      2. 6.2.2 Alinma Investment

      3. 6.2.3 Al Rayan Qatar

      4. 6.2.4 HSBC Saudi

      5. 6.2.5 Alkhabeer Capital

      6. 6.2.6 Blackrock

      7. 6.2.7 Invesco

      8. 6.2.8 Franklin Templeton

      9. 6.2.9 Xtracker

      10. 6.2.10 Chimera Capital LLC*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER

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Frequently Asked Questions

The Middle East and Africa ETF Market market is studied from 2018 - 2027.

The Middle East and Africa ETF Market is growing at a CAGR of <9% over the next 5 years.

Al Bilad Capital, Alinma Investment, Al Rayan Qatar, HSBC Saudi, Blackrock are the major companies operating in Middle East and Africa ETF Market .

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