Global financial giants are increasingly turning their attention to the Middle East and are establishing operations in cities such as Dubai, Abu Dhabi, and Riyadh. With attractive incentives such as low taxes, and robust regulatory frameworks, the region has become a magnet for investment banks, hedge funds, asset managers, family offices, and law firms. Major players like JPMorgan, Goldman Sachs, and Morgan Stanley have strengthened their presence across the UAE and Saudi Arabia.
Asset management firms are also joining the trend. BlackRock, the world’s largest asset manager, has maintained a strong foothold in Saudi Arabia since opening its Riyadh office in 2019. Meanwhile, Wellington Management and Fiera Capital made their regional debuts in Dubai and Abu Dhabi, respectively, underscoring the region’s growing appeal for global asset managers. These firms are drawn by opportunities in the Gulf’s booming financial sector and the region’s commitment to diversifying beyond oil revenues.
The United Arab Emirates (UAE) is set to remain the world’s top destination for wealthy individuals for the third consecutive year, with a projected net inflow of 6,700 millionaires by the end of 2024, according to the Henley Private Wealth Migration Report. This figure significantly surpasses the United States, which ranks second with an expected net inflow of 3,800 millionaires. The UAE’s appeal lies in its favorable tax policies, strategic geographic location, world-class infrastructure, and attractive long-term residency programs such as the “golden visa.”
Africa: a New Era of Economic Growth
Africa is also an attractive place for investments, as demonstrated by the resounding success of the Africa Investment Forum 2024, which concluded on December 6 in Rabat, Morocco. The event secured an impressive $29.2 billion in new investor commitments after three days of intensive boardroom discussions. This year’s Forum witnessed a record attendance of 2,300 investors and delegates from 83 countries, marking a 60% increase from the previous year. Across 41 investment boardrooms, participants engaged in discussions spanning sectors such as transport, power, energy, agribusiness, industry, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management.
One standout success from the Forum was Nigeria’s Special Agro-Processing Zone project, which aimed to raise $975 million but secured $4.8 billion in investor interest. Similarly, projects from Morocco and the Democratic Republic of the Congo attracted investments surpassing initial targets. The Forum’s founding partners, including Africa50, Afreximbank, the Development Bank of Southern Africa, the Africa Finance Corporation, and the Islamic Development Bank, reaffirmed their dedication to strengthening collaboration and driving transformative investments across the continent.
As global financial powerhouses continue to deepen their roots in the Middle East and investors increasingly turn their focus to Africa’s vast potential, both regions are emerging as pivotal hubs in the evolving global economic landscape. With that in context, let’s take a look at the 12 best Middle East and Africa stocks to buy right now.
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Our Methodology
To compile our list of the 12 best Middle East and Africa stocks to buy right now, we used Finviz and Yahoo stock screeners to compile an initial list of the 30 largest companies in the Middle East and Africa. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Middle East and Africa Stocks To Buy Right Now
12. Yalla Group Limited (NYSE:YALA)
Number of Hedge Fund Investors: 4
Yalla Group Limited (NYSE:YALA) is a leading social networking and entertainment platform based in the United Arab Emirates. The company primarily focuses on markets in the Middle East and North Africa (MENA) region. Yalla Group Limited (NYSE:YALA) offers group chat and entertainment services and generates revenue primarily through in-app purchases and premium services.
Yalla Group Limited (NYSE:YALA) is focused on deepening its localization capabilities, which enables the company to roll out new game features and operate events that fulfill the social and entertainment needs of its users. The company has seen significant success with its casual games such as Yalla Ludo and 101 Okey Yalla, which have achieved quarterly revenue records in Q3. Yalla Group Limited (NYSE:YALA) plans to build on this success by expanding its game offerings to include mid-core and hard-core games, with several titles currently in development and expected to be rolled out in 2025. This expansion into new game genres is expected to drive further growth and increase the company’s market share in the MENA region.
Yalla Group Limited (NYSE:YALA) is also exploring opportunities for external cooperation and expansion into new areas. The company has begun engaging in discussions with top-tier overseas internet companies interested in exploring the MENA market. While the Middle East market remains the company’s primary focus, Yalla Group Limited (NYSE:YALA) is also considering global promotions for new products with suitable content. This expansion into new markets and partnerships is expected to drive further growth and increase the company’s global presence.
11. Swvl Holdings Corp. (NASDAQ:SWVL)
Number of Hedge Fund Investors: 6
Swvl Holdings Corp. (NASDAQ:SWVL) is a Dubai-based tech-driven mobility company that provides transformative mass transit and ride-sharing solutions. The company operates in multiple emerging markets and offers cost-effective transportation options through its proprietary platform.
Swvl Holdings Corp. (NASDAQ:SWVL) has relaunched its product in the United Arab Emirates, a key market that aligns perfectly with the company’s growth strategy. By reintroducing its comprehensive product suite, Swvl Holdings Corp. (NASDAQ:SWVL) aims to cater to the diverse needs of riders, captains, transit operators, and transport managers by providing a seamless and efficient transportation experience. This strategic move is expected to strengthen the company’s presence in the region and solidify its position as a leader in the mobility industry.
The UAE’s transit market presents significant growth opportunities for Swvl Holdings Corp. (NASDAQ:SWVL). The company’s solutions are designed to support the country’s vision for a more efficient, reliable, and environmentally friendly transportation system, aligning with the UAE’s strategic goals for sustainable development. By leveraging its expertise and technology, Swvl Holdings Corp. (NASDAQ:SWVL) aims to contribute to the growth of the UAE’s smart transit market, creating new opportunities for businesses, residents, and visitors alike.
