The Gulf stock market bubble could burst at any minute, according to one leading banker. Investors in the Gulf region should beware that some prices may have over-reached themselves, said Abdulhakeem Alkhayyat, General Manager of the Kuwait Finance House Bahrain, and that prices may be susceptible to a sharp downturn.
"Many companies have P/E (price to earnings) ratios of 30, 45, 50 or 60, which may leave them vulnerable," he said, according to <i>Gulf Daily News</i>.
"The issue is that there are many small investors who are putting their money into the stock markets based on rumor and hearsay without really looking at what they are investing in," he added.
Alkhayyat made the comments at a recent World Islamic Banking Conference (WIBC) Power Table, where more than 700 delegates from more than 30 countries participated.
The conference, held at the Gulf Hotel's Gulf International Convention and Exhibition Centre (GICEC), presented the theme of: Unlocking Market Opportunities: Consolidation, Innovation & Growth.
The two-day WIBC, held under the patronage of Prime Minister Shaikh Khalifa Bin Salman Al Khalifa, was organized by Dubai-based Mega Events.
Alkhayyat added that while Islamic banks have been innovative, they need to be able to attract strong talent in order to meet the challenges ahead.
