SOE Heavy Stocks

Executive Summary

What is this report about?
Companies in the GCC region have heavy investments from Government and State owned entities. The state owned entities includes social security and pension funds, Sovereign Wealth Funds (SWFs), Ministries and Government themselves are important investors in GCC stock markets. In this report we analyse a total of 172 publicly listed companies in which 74 state owned entities have invested in. Based on shareholding analysis, the top fifteen stocks with higher share of SoE holdings were segregated for further analysis. This report also analyses the country wise distribution of SOE heavy stocks.

Who will benefit and why?
The report will benefit anyone tracking the investment patterns of Government institutions such as asset management companies, portfolio management companies, investment bankers and economists. This report would help these entities to gain in-depth understanding about the investments patterns.

How exhaustive is this report?
We have analyzed the stocks that are heavy with SOE investment. We have taken the top 15 companies that have the highest SOE holdings and analyses their stock performance over the past five years. We also compare the returns generated by SOE heavy stocks against the conventional S&P GCC. We also compute the key parameters such as the portfolio alpha, beta, standard deviation and Sharpe ratio.