We recently published a list of the 12 Best Middle East and Africa Stocks To Buy Right Now. In this article, we are going to take a look at where Sibanye Stillwater Limited (NYSE:SBSW) stands against other best Middle East and Africa stocks to buy right now.
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.
A mining truck loaded with precious metals in an open pit mine.
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).
Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Investors: 18
Sibanye Stillwater Limited (NYSE:SBSW) is a multinational mining company headquartered in South Africa. The company is a leading producer of precious metals, including platinum, palladium, and gold. Sibanye Stillwater Limited (NYSE:SBSW) is also strategically expanding into new areas such as zinc and uranium.
One of the key areas of focus for Sibanye Stillwater Limited (NYSE:SBSW) is its expansion into new commodities, particularly zinc and uranium. The company’s Century City zinc segment has shown promising results, with a significant increase in EBITDA and payable production. Sibanye Stillwater Limited (NYSE:SBSW) is also exploring opportunities to increase its exposure to the uranium market, which is expected to experience growth driven by the increasing demand for nuclear energy. The company has announced a partnership with C5 Capital to explore uranium at a global scale, which is expected to enhance its earnings capacity and diversify its revenue streams.
To drive growth and expansion, Sibanye Stillwater Limited (NYSE:SBSW) is focusing on optimizing its existing operations and improving its production efficiency. Additionally, Sibanye Stillwater Limited (NYSE:SBSW) is working to address the technical challenges that have impacted its production in the past, including the cyber-attack that disrupted its sales pipeline. By resolving these issues and improving its operational performance, the company is confident that it can increase its production and reduce its costs, ultimately leading to improved profitability and cash flow.
Overall, SBSW ranks 6th on our list of best Middle East and Africa stocks to buy right now. While we acknowledge the potential of SBSW to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBSW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.