The six GCC economies are expected to grow at 3.9% throughout 2023, which marks twice the pace of the estimated world growth of 1.7%, according to a recent report by Mubasher Capital.

As governments plan to boost the growth of their non-oil sector, four out of the six economies registered fiscal surplus in 2022.

Mubasher Capital added that the stocks trading on the GCC stock markets offer a broad diversification under 11 sectors.

Furthermore, there are 368 out of the 668 GCC companies which disburse cash dividends that are sufficiently distributed among sectors.

“Cash dividends are almost tax-free in the majority of GCC markets and capital gains are completely tax-free,” Mubasher Capital stated.

The Gulf countries offer more than capital gains from price movements, as in excess of 300 companies distribute a portion of their earnings/retained earnings in cash to shareholders on an annual basis.

“Mubasher Asset Management sets certain parameters for the selection of the stocks paying dividends each quarter that ensure it adds value to shareholders, our investors,” according to the report.

The GCC has diverse sectors that are considered a significant pillar of investment portfolio construction which targets capital gains and is economically oriented. It also cuts systematic and sectoral risks, in addition to capturing cash returns from dividend paying stocks.

Information technology sectors and healthcare, which are considered the defensive sectors providing insurance to the portfolios during the transitional economic periods, have at least six companies that pay cash dividends. Meanwhile, the financial and real estate sectors, including real estate investment funds, have 120 and 31 companies, respectively, while being the largest in terms of the number and value of cash dividends.

It is worth noting that Mubasher Asset Management’s investment professionals provide strategies covering the full spectrum of asset classes, including equity, fixed income, alternatives, money market, ETFs, and multi-asset solutions. It guarantees that both professional and individual investors receive personalised insights to help make smart, long-term investment decisions.

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