NAV in December 2010 +3,34 %
The biggest news from the GCC region in December was the announcement of the winning bid for Qatar’s hosting of WorldCup 2022. In terms of GDP, Qatar currently has the lowest GDP of any World Cup host nation. Despite the country’s GDP is expected to grow significantly over the next decade and will reach a size larger than Spain’s GDP in 1982 and Mexico in 1986, Qatar’s economic composition is relatively narrow, with oil and gas accounting for about 50 percent of GDP. According to the initial estimates of the total expenditure for the World Cup it is around U.S. $ 30 billion. This represents around 25 percent of Qatar’s estimated GDP in 2010, far more than other hosting countries have used / are expected to spend as a percentage of their GDP. This is the most important fact which underlines our positive attitude to the effects of the World Cup on Qatar’s banks. The largest increase in the fund in December was our investment in Doha Bank, plus 16 percent.
In late December, the Eurasia Group issued a very positive statement about the region stating that “the possibilities are emerging strongly in the Middle East with regard to 2011th predictions of the region has a long history of being too optimistic but there is reason to believe that 2011 will be different. Clear positive signs are emerging in several countries and in multiple sectors. At the macro level, the region will be upward pressure because of rising energy prices and the potential for large-scale capital inflows “.