Goldman Sachs eyes Gulf opportunities for wealthy clients

Goldman Sachs Group Inc. is planning to launch several investment strategies that will allow the firm and its wealthy clients to deploy capital in the Gulf’s public markets.

Companies based in the Middle East currently comprise about 7% of the widely-tracked MSCI Emerging Markets Index and the bank’s research suggests that could grow to as much as to 10%, Marc Nachmann, Goldman’s global head of asset and wealth management, said in an interview with Bloomberg Television. That should help draw more international investors to deploy their funds into the Gulf, he said.

“We’re excited about the region both as a source of capital but also as an opportunity to invest in local markets,” Nachmann said on the sidelines of Qatar Economic Forum. “We think there’s interesting opportunities for us to invest in the region, have international investors come here as well.”

For years, asset management executives have traveled to the Middle East to raise billions from the region’s sovereign wealth funds. Nachmann’s comments show that dynamic is quickly changing as countries across the Gulf look to raise funds for their own domestic initiatives. 

In the wide-ranging interview, Nachmann said the bank is expanding its private credit business after recently inking partnerships with players like Abu Dhabi’s Mubadala Investment Co. That tie-up will have both companies focused on direct lending across Asia. 

He added that the risk-reward in direct lending is “unusually good”  at the moment and that loan-to-value ratios in the space are attractive. He also said Goldman is comfortable with credit risk despite the higher interest rate environment.

The government of the State of Qatar is the underwriter of the Qatar Economic Forum, Powered by Bloomberg.