RDR Capital’s MENA portfolio is up 2.5% in the first nine months of 2017 (9m17) and up 18.9% since inception (the portfolio was incepted on the 1st of October 2016). Our global portfolio is down 1.5% in 9m17 in GBP terms (up 7.4% in USD terms) and since inception (the portfolio was incepted on the 1st of January 2017).
Geopolitics weighed on the MENA portfolio’s performance during the third quarter of 2017
The Middle East and North Africa (MENA) portfolio was under pressure during the third quarter of 2017 (3Q17) mainly due to the geopolitical crisis in the gulf region between Qatar on one side and a Saudi-led coalition that includes the UAE, Egypt and Bahrain on the other. The coalition imposed a land, sea and air embargo on Qatar. The crisis has put negative pressure on regional markets, especially the Qatari market, as liquidity exited. The International Monetary Fund (IMF) cut its non-hydrocarbon growth forecast for the Qatari economy in 2017 from 5.7% to 4.6%. It is reasonable to expect confidence to weaken and investment to drop the longer this crisis continues.