MENA fund managers plan to increase their exposure to Egypt over the next three months, according to a Reuters poll. The majority of managers are bullish on investments in Egypt despite the market’s “exposure” to the economic fallout caused by covid-19, including a drop in tourism and remittances, both of which are key sources of hard currency. One respondent pointed to Egypt being among one of a handful of countries that could avoid seeing its economy contract this year “because of foreign reserves and credit lines with international financial institutions.”

Investors are mixed on UAE, mostly bearish on Saudi: Four of the seven fund managers polled said they would boost their investments in the UAE despite the Abu Dhabi and Dubai stock markets tumbling YTD as shutdown measures spelled doom for the emirates’ aviation and tourism industry. The investors said they’ve pulled out of stocks in the worst-hit sectors and are now looking for “bargains” in markets they see as underpriced. Meanwhile, the picture is less rosy in Saudi Arabia, where four managers are keeping their allocations unchanged but at least one has already cut their exposure last quarter.