International investors are attracted by growth prospects in the Middle East and are keen to engage with companies in the region, according to a study of capital markets perceptions and investor relations (IR) best practices. The study, the first of its kind in the Middle East, was commissioned by the Middle East Investor Relations Society (ME-IR Society) and undertaken by Thomson Reuters Extel Survey.
The study highlights the particular challenges and opportunities facing both investors and regional IR professionals. Importantly, the results of the survey demonstrate that investors believe that regional capital markets have significant growth potential –although concerns were expressed about liquidity levels and corporate governance standards. Among participants in the survey, however, there was a consensus that regional corporate governance standards continue to improve.
Interestingly, respondents said that they turn to regional firms’ own websites as the first source for information about their performance. Additionally, the results of the study emphasise the need for more independent, professional investor relations services to bridge the gap between corporate management and investors, as well as the adoption of international financial reporting standards.
“The ME-IR Society is pleased to announce the results of the first study of capital markets perceptions and IR best practices in the Middle East,” said Gretchen Haynes, General Manager, ME-IR Society. “The tough global economic conditions over the past year have created new challenges for IR professionals in the region and across the world. Now more than ever, the role of IR has gained immense significance. We believe that this study provides excellent insights that will enable IR professionals in this region to better engage with international investors.”
Steve Kelly, Head of Thomson Reuters Extel Surveys, which conducted the study for the ME-IR Society, said, “We are very pleased to have carried out this inaugural study of IR and investor expectations for the region, as the Middle East develops rapidly into the forefront of capital markets worldwide. The results of this survey show that investors globally want closer, more transparent relations with companies, based on open disclosure and productive one-on-one sessions.”
The Middle East Investor Relations Society was established in 2008 and aims to ensure that regional companies have access to the necessary tools, resources and network of experts to support them in their efforts to adopt and implement best practice investor relations.
The full results of this survey are available to members of the ME-IR Society. An executive summary of the results can be accessed by the general public at: www.me-irsociety.com.
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