Via Bloomberg, an interesting review of the equity markets in Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman where – as oil revenues spur construction and increase demand – profit growth is projected to exceed other emerging markets around the word. As the article notes:

“… The MSCI GCC Countries Index of the six Gulf Cooperation Council members is 12 percent less expensive than shares in the MSCI Emerging Markets Index, which includes stocks in China and Brazil, according to data compiled by Bloomberg. Benchmark indexes in Saudi Arabia, the U.A.E. and Oman have risen at least 25 percent this quarter.

“…Knerr owns Dubai-based Emaar Properties PJSC, the biggest publicly traded real-estate developer in the Middle East, and Orascom Construction Industries, the region’s largest publicly traded cement maker, located in Cairo.

…Investment restrictions have limited the benefits of booming Arab stocks. The market capitalization of all Middle Eastern shares available to foreigners is about $209 billion, according to Morgan Stanley… In Saudi Arabia, only residents of GCC states can freely trade the country’s stocks, while the U.A.E. limits foreign ownership to 49 percent of a local company’s shares. The restriction in Oman is 70 percent.

…Mobius, who bought Muscat, Oman-based Galfar Engineering & Contracting SAOG after its initial public offering in September, eliminated Emaar from three of the funds he manages last quarter. “…There’s a greater effort to build an industrial base, broaden the economy and build a foundation for the long term, before all the oil reserves run out,” said Dan Chamby, who runs the $41 billion BlackRock Global Allocation Fund in Plainsboro, New Jersey. “There’s immense opportunity.”

His fund, which owns equities, bonds and currencies, bought Islamic bonds convertible to stock in Dana Gas PJSC, a Sharjah, U.A.E.-based natural gas company, and Aldar Properties PJSC, Abu Dhabi’s biggest real-estate business, about six months ago….”