Morocco Ranks 2nd in Africa In Bloomberg’s Most-Promising Emerging Markets

Via Morocco World News, a report on Morocco’s investment potential:

Bloomberg ranked the kingdom ahead of Russia, Greece, and India. At the African level, Morocco was ranked 2nd behind South Africa (19th).

The ranking of the most-emerging markets was dominated by South Korea, followed by Qatar, China, the United Arab Emirates, Chile, Malaysia, Panama, Peru, Latvia and Poland.

Saudi Arabia heads the list of the most promising frontier markets, ahead of Estonia, Slovakia, Lithuania, Bahrain, Slovenia, Bulgaria, Vietnam, Kazakhstan and Romania.

Saudi Arabia is classified as frontier because it limits direct investment in its markets to the six members of the Gulf Cooperation Council, or GCC, Bloomberg said. Others can invest in the Gulf country only via swaps or ETFs.

Bloomberg based its emerging and frontier markets rankings on 19 measures of the investing climate, ranging from forecasts of gross domestic product growth for the next two years to the ease of doing business. These measures were grouped into three categories. 

Economic measures included average projected GDP growth for 2015 and 2016, plus projected inflation rate, government debt as a percentage of GDP, total investment as a percentage of GDP and current-account balance as a percentage of GDP. Also included were the current labor participation rate, foreign reserves as a percentage of GDP and World Economic Forum infrastructure score.

Financial measures: price-to-book ratio of the primary equity index, liquidity of the primary equity index over three years, exchange-rate volatility over three years, two-year sovereign-debt credit-default-swap spread and the Economist Intelligence Unit’s banking risk score.

Political and social measures: Transparency International’s Corruption Perceptions Index score, the EIU’s political risk score, the World Bank’s ease-of-doing-business score and the adult literacy rate.

Bloomberg ranked emerging or frontier markets based on their overall investment potential through 2016. The ranking used data from Bloomberg, MSCI, FTSE, Standard & Poor’s and JP Morgan.

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.