Our Correspondent | Africa Guardian
We recently highlighted the 12 best stocks to buy in the Middle East and Africa, and today we’ll examine Sasol Limited (NYSE: SSL) to see how it stacks up against other top picks from the region.
The Middle East has become a hotspot for global financial giants, with cities like Dubai, Abu Dhabi, and Riyadh attracting major players. These cities offer attractive incentives such as low taxes and strong regulatory frameworks, making them prime locations for investment banks, hedge funds, asset managers, and law firms. Leading institutions like JPMorgan, Goldman Sachs, and Morgan Stanley are significantly expanding their presence in the UAE and Saudi Arabia.
The asset management sector is also thriving in the region. BlackRock, the world’s largest asset manager, has had a solid presence in Saudi Arabia since opening its Riyadh office in 2019. Additionally, Wellington Management and Fiera Capital have launched their regional offices in Dubai and Abu Dhabi, signaling the growing appeal of the Gulf’s financial sector. The region’s commitment to diversifying its economy beyond oil also adds to its investment potential.
The UAE is set to maintain its position as the world’s top destination for wealthy individuals, with an expected net influx of 6,700 millionaires by the end of 2024, according to the Henley Private Wealth Migration Report. This figure dwarfs the 3,800 millionaires projected to move to the United States, placing the UAE in the lead for the third year in a row. Its favorable tax policies, prime location, world-class infrastructure, and attractive residency options like the “golden visa” continue to draw investors.
Africa is also garnering attention as an investment hotspot. The Africa Investment Forum 2024, held in Rabat, Morocco, was a resounding success, securing $29.2 billion in new investor commitments. The event attracted 2,300 participants from 83 countries, marking a 60% increase in attendance from the previous year. Discussions spanned multiple sectors, including transport, power, energy, agribusiness, mining, and tourism, underscoring Africa’s immense investment potential.
A key highlight of the Forum was Nigeria’s Special Agro-Processing Zone project, which raised $4.8 billion in investor interest—far surpassing its initial target of $975 million. Similarly, projects in Morocco and the Democratic Republic of the Congo attracted substantial investments. Founding partners of the Forum, including Africa50, Afreximbank, and the Development Bank of Southern Africa, reaffirmed their commitment to advancing transformative investments across the continent.
As global financial institutions continue to deepen their presence in the Middle East and Africa, these regions are increasingly positioned as critical players in the evolving global economy.
For our list of the 12 best Middle East and Africa stocks to buy, we used Finviz and Yahoo stock screeners to identify the 30 largest companies in the region. From there, we ranked the top 12 based on hedge fund sentiment, using Insider Monkey’s Hedge Fund database to determine which stocks are most favored by institutional investors as of Q3 2024.
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