Growing Unrest in the Middle East

Growing unrest in the Middle East sent Dubai stocks to the cheapest level in the world relative to company assets, a signal to ING Groep NV and Charlemagne Capital Ltd. that shares in the region's financial hub are worth buying.

The Dubai Financial Market General Index's 13 percent drop this year left it valued at 0.6 times net assets, or book value, a 67 percent discount to the global average and the least since Bloomberg began compiling the data four years ago. Emirates NBD PJSC (EMIRATES), the United Arab Emirates' biggest bank by assets, fetches 3.15 dirhams ($0.86) even after the company said last month its book value was about 6.06 dirhams a share on Dec. 31.

Stocks sank as protests that unseated governments in Egypt and Tunisia spread across the Middle East, threatening to slow growth in Dubai, the regional headquarters for global firms from Goldman Sachs Group Inc. (GS) to Morgan Stanley. The emirate's 0.4 percent inflation rate and 0.8 percent unemployment set Dubai apart, reducing the likelihood of turmoil and presenting opportunities for investors, ING and Charlemagne Capital say.

"Worst-case scenarios are being priced in," said Mark Krombas, a London-based money manager at Charlemagne Capital, which oversees about $3.5 billion in emerging markets. "For those who are brave and for value investors with patience, there are very strong opportunities."

Relative Value

Growing unrest in the Middle East sent Dubai stocks to the cheapest level in the world relative to company assets, a signal to ING Groep NV and Charlemagne Capital Ltd. that shares in the region's financial hub are worth buying.

The Dubai Financial Market General Index's 13 percent drop this year left it valued at 0.6 times net assets, or book value, a 67 percent discount to the global average and the least since Bloomberg began compiling the data four years ago. Emirates NBD PJSC (EMIRATES), the United Arab Emirates' biggest bank by assets, fetches 3.15 dirhams ($0.86) even after the company said last month its book value was about 6.06 dirhams a share on Dec. 31.

Stocks sank as protests that unseated governments in Egypt and Tunisia spread across the Middle East, threatening to slow growth in Dubai, the regional headquarters for global firms from Goldman Sachs Group Inc. (GS) to Morgan Stanley. The emirate's 0.4 percent inflation rate and 0.8 percent unemployment set Dubai apart, reducing the likelihood of turmoil and presenting opportunities for investors, ING and Charlemagne Capital say.

"Worst-case scenarios are being priced in," said Mark Krombas, a London-based money manager at Charlemagne Capital, which oversees about $3.5 billion in emerging markets. "For those who are brave and for value investors with patience, there are very strong

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