$2 billion invested
in investment funds

Half are in local funds

Subscriptions in local and foreign investment funds totaled $1.95 billion in 2016, according to the annual report of the Capital Markets Authority (CMA) for 2016. This represents an increase of 17 percent compared with the subscriptions recorded in 2015.

The increase in the value of subscriptions was the result of new regulations and new measures taken by the CMA which have encouraged investment in financial securities, said Tarek Zebian, Director of Research and Communication at the CMA.

The number of subscribers increased 2.9 percent to more than 9,400 while the number of investment funds fell five percent to 490.

Subscriptions in local funds rose 7.7 percent to $1.04 billion. Subscriptions in foreign funds and in funds registered abroad jumped 29 percent to $902.1 million.

Out of the 23 local funds, five invest locally and 11 funds invest in other Middle Eastern countries.

Investment banks and financial intermediaries are expected to witness an increase in their operations in the future due to more investor awareness and new regulatory measures by the CMA and BDL, Zebian said.

Local investors are increasingly diversifying by investing in financial securities, he said.

In November 2016, the Central Bank (BDL) issued intermediate Circular 437, which requires commercial banks to conduct investment activities through financial intermediaries and investment banks.