The Banking Executive Magazine - Septmber Issue 2021

GCC ASSET MANAGERS EXPECT STRONGER INFLOWS; DEMAND FOR ESG, ISLAMIC INVESTING Asset managers in Gulf Cooperation Council (GCC) countries expect in- creased inflows over the next 12 months amid growing demand for Is- lamic and environmental, social and governance (ESG)-compliant invest- ments, according to Moody's 2021 survey of chief investment officers (CIOs) from eight leading GCC fund firms. "Half of CIO respondents expect double-digit growth in net inflows, and another 33 percent foresee a high single-digit increase," Vanessa Robert, VP-Senior Credit Officer at Moody's Investors Service. "Improved investment results and stronger fees, already comparatively high in the GCC region, will further support revenue growth." The survey found 38 percent of re- spondents expect a significant in- crease in demand for ESG-compliant investment products. Half of respondents expect sales of Islamic products to grow more rap- idly than sales of conventional in- vestments in the next year. The rising demand reflects the GCC region's large Muslim population, and the in- dustry's efforts to expand its range of Islamic investment options, the re- port said. On the downside, respondents' opti- mism was tempered by worries over geopolitical tensions, the economic impact of the pandemic, and volatile oil prices. the BANKING EXECUTIVE 34 ISSUE 153 SEPTEMBER 2021