Alea Journal - November 2018

Page 13

But the top asset class for investment was logistics. Reasons for this vary widely, but it is thought that the most obvious of which is the growth of online retail, which has led to a boom in warehousing, logistics and delivery. Start-ups can also be attractive to investors for two reasons. Firstly, companies realize that partnering with startups gives them access to new ideas to help their business, and to give them a role in helping stimulate growth in other communities - feeding back into investors’ need for money to contribute towards social good. But also, members of the World Economic Forum’s Regional Business Council (RBC), which includes some of the leading businesses in the region, are pledging to allocate 10 percent of their procurement budget to SMEs, start-ups and entrepreneurs by 2020. This shows that there is also a political will to support this area of business. It’s all well and good knowing which sectors the money is flowing in and out of, but where, geographically, are the flows of capital in and out of the Middle East? Interest at the moment seems to be focused around Europe, with Germany and London seen as attractive propositions. But with this interest comes a premium - and the colossal capital from China and Hong Kong means Middle East investors are often outbid. Speaking of London, investment in the city is said to be resilient, despite continued uncertainty around Brexit. It is expected that London will remain a dominant gateway city for investment despite the instability Brexit is expected to bring. However, it is thought this could open up interest in opportunities in Germany and France, and how they might develop over the next few years.


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