We recently published a list of the 12 Best Middle East and Africa Stocks To Buy Right Now. In this article, we are going to take a look at where Gold Fields Limited (NYSE:GFI) stands against other best Middle East and Africa stocks to buy right now.
Global financial giants are increasingly turning their attention to the Middle East and are establishing operations in cities such as Dubai, Abu Dhabi, and Riyadh. With attractive incentives such as low taxes, and robust regulatory frameworks, the region has become a magnet for investment banks, hedge funds, asset managers, family offices, and law firms. Major players like JPMorgan, Goldman Sachs, and Morgan Stanley have strengthened their presence across the UAE and Saudi Arabia.
Asset management firms are also joining the trend. BlackRock, the world’s largest asset manager, has maintained a strong foothold in Saudi Arabia since opening its Riyadh office in 2019. Meanwhile, Wellington Management and Fiera Capital made their regional debuts in Dubai and Abu Dhabi, respectively, underscoring the region’s growing appeal for global asset managers. These firms are drawn by opportunities in the Gulf’s booming financial sector and the region’s commitment to diversifying beyond oil revenues.
The United Arab Emirates (UAE) is set to remain the world’s top destination for wealthy individuals for the third consecutive year, with a projected net inflow of 6,700 millionaires by the end of 2024, according to the Henley Private Wealth Migration Report. This figure significantly surpasses the United States, which ranks second with an expected net inflow of 3,800 millionaires. The UAE’s appeal lies in its favorable tax policies, strategic geographic location, world-class infrastructure, and attractive long-term residency programs such as the “golden visa.”
Africa: A New Era of Economic Growth
Africa is also an attractive place for investments, as demonstrated by the resounding success of the Africa Investment Forum 2024, which concluded on December 6 in Rabat, Morocco. The event secured an impressive $29.2 billion in new investor commitments after three days of intensive boardroom discussions. This year’s Forum witnessed a record attendance of 2,300 investors and delegates from 83 countries, marking a 60% increase from the previous year. Across 41 investment boardrooms, participants engaged in discussions spanning sectors such as transport, power, energy, agribusiness, industry, mining, pharmaceuticals, private equity, tourism, urban infrastructure, and water management.
One standout success from the Forum was Nigeria’s Special Agro-Processing Zone project, which aimed to raise $975 million but secured $4.8 billion in investor interest. Similarly, projects from Morocco and the Democratic Republic of the Congo attracted investments surpassing initial targets. The Forum’s founding partners, including Africa50, Afreximbank, the Development Bank of Southern Africa, the Africa Finance Corporation, and the Islamic Development Bank, reaffirmed their dedication to strengthening collaboration and driving transformative investments across the continent.
As global financial powerhouses continue to deepen their roots in the Middle East and investors increasingly turn their focus to Africa’s vast potential, both regions are emerging as pivotal hubs in the evolving global economic landscape.
Aerial view of a large gold mine in South Africa with many excavators and trucks working.
Our Methodology
To compile our list of the 12 best Middle East and Africa stocks to buy right now, we used Finviz and Yahoo stock screeners to compile an initial list of the 30 largest companies in the Middle East and Africa. We then used Insider Monkey’s Hedge Fund database to rank 12 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Gold Fields Limited (NYSE:GFI)
Number of Hedge Fund Investors: 22
Gold Fields Limited (NYSE:GFI) is a globally recognized gold mining company with a robust and diverse portfolio of assets strategically positioned across key mining regions, including South Africa, South America (Chile and Peru), Ghana, Australia, and Canada.
Gold Fields Limited (NYSE:GFI) has been proactively addressing several operational hurdles stemming mainly from persistent issues at the South Deep mine in South Africa and the Gruyere mine in Australia, as well as delays in the production ramp-up at the highly anticipated Salares Norte project in Chile. The company demonstrated notable improvements in Q3, reporting gold production of 510,000 ounces. This figure marks a recovery from the 454,000 ounces produced in Q2, though it still represents a decline compared to the 542,000 ounces achieved in the same quarter of the previous year.
Gold Fields Limited (NYSE:GFI) is also exploring the possibility of divesting its smaller and less efficient mining assets in Ghana and Peru. This potential move is part of a broader strategy to concentrate resources and capital on larger, higher-yielding operations that offer stronger long-term growth prospects. Additionally, the company plans to leverage opportunities arising from its recent acquisition of Osisko Mining’s assets, which are anticipated to further strengthen its portfolio and enhance production capabilities in the coming years.
Overall, GFI ranks 5th on our list of best Middle East and Africa stocks to buy right now. While we acknowledge the potential of GFI to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
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