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Finance & Accounting
Pages 3 (753 words)
Diversification Diversification is an investment technique which reduces the risk by allowing investment in different financial instruments, companies and other categories. The objective of this practice is to maximize the return on investment by investing in various areas that responds differently to a specific event.
Despite the politically fragile state of Middle East, investors can still enjoy the advantages of diversification in investment. For this, they should focus on integrating various asset classes in order to enjoy maximum benefits. Investors in Middle East should largely focus on developing markets like Jordan, Saudi Arabia, Bahrain Kuwait, and Oman. The biggest free economy in Middle East is Saudi Arabia and it stand as the most influential and biggest stock market in Arab world. In terms of capitalization, it holds a 11th position in the world. Jordan is also an important investment area as it stands at a unique position where Middle East, Europe and Africa intersect. The strategical geographical location of Oman with a stable political system and free economic market makes it a valuable investment arena. Oman has raised the confidence of domestic and international investors due to its stable stock market. The Middle Eastern population has the significant opportunity to invest wide across these developing markets Practically all asset classes are available in Middle East for Investors with stocks and real estate being the major ones. Although all asset classes are at disposal for Middle Eastern investors, few markets are more mature comparing to others. ...
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