Its Middle East Investment Panorama report also found uncertainty over whether regulations in Gulf Cooperation Council (GCC) countries were heading in the right direction.
About three-quarters of the 225 advisers surveyed across the GCC were worried about the evolving legal environment, while just 14.7% were upbeat. Over half of the respondents (54.2%) said they viewed regulatory change as a “challenge”. However, this was not significantly larger than the proportion (40.4%) who considered altered regulations an “opportunity”.
The uncertainty relates, in part, to the potential impact of UK Retail Distribution Review rules, due to take effect at the end of 2012. While some advisers in GCC and MENA countries will be disadvantaged by the additional levels of disclosure required, the report said, compliant advisers will be able to use the change to differentiate themselves from those who are not.
According to Insight Discovery, the fact that several countries in the region are competing for financial services business raises the prospect that regulatory developments will be broadly positive for the industry. “It is reasonable to expect that…a regulatory environment will appear within three years that is widely regarded as presenting a major opportunity,” it said.
Research for the Middle East Investment Panorama report was conducted in May and June, and consisted of online surveys, phone interviews and meetings. Responses from advisers working for asset management or international life companies were excluded from the results.
To read the full report please visit www.insight-discovery.com
