Moody’s Investors Service said on Monday that asset managers in the Gulf countries expect an increased demand for Islamic investments that are compliant with environmental, social, and corporate governance.
Moody’s stated that the results of a survey conducted by it showed that half of the respondents from senior investment officials expected growth in net inflows in the next 12 months in the region.
The poll included senior investment officials in eight of the finance companies in the Gulf Cooperation Council countries.
Moody’s did not name the funds surveyed.
Half of the respondents expect a significant increase in net flows of more than 10 percent, and a third expect a “modest” increase, Moody’s Vice President of Credit, Vanessa Robert, said in a statement.
“Improved investment results and stronger fees, already relatively high in the Gulf region, will further support revenue growth,” Vanessa added.
The survey revealed that 38 percent of respondents expect a significant increase in the demand for investment products that are compliant with environmental, social and corporate governance.
Half of the respondents expected sales of Islamic products to grow faster than sales of traditional investments in the coming year.
The survey stated that “the increasing demand for Islamic products reflects a large number of Muslims in the region, and the industry’s efforts to expand the range of Islamic investment options.”
The Gulf countries are trying to recover from the worst economic and financial crisis in their history during the past year as a result of the negative consequences of the outbreak of the Corona pandemic, and the drop in oil prices, the main source of income in the region, amid the decline in global demand.