Frontier Markets Offer Amazing Benefits
Frontier markets, also known as (emerging) emerging markets, are some of the fastest growing and highest performing markets available to investors who are looking for a good place to put their funds.
In 2006, for instance, Bangladesh’s market rose by an incredible 60%. Many other emerging markets rose by 30% on average during that same time period. As the current economic crisis winds down and the market’s overall, enjoy a time of renewal, frontier markets are once again coming to the forefront and attracting the attention of all kinds of investors.
Frontier Markets, Defined
A frontier market is a small market, belonging to a nation that is enjoying the benefits of trading commodities and stock at an increasing level of effectiveness. There are some things which such markets have in common that mark them as frontier markets rather than simply emerging markets.
Accessibility – In order for investors to recognize a small active market as a frontier market, it must be accessible to foreign investors and be open to participation by those foreign investors.
National Stability – Countries which are currently undergoing a period of extreme political unrest or economic instability are not considered to be valuable frontier markets.
Why Frontier Markets Are A Good Choice For Investors
Economic growth and increased consumer spending in frontier markets indicates that they will soon be eligible for inclusion among the ranks of emerging markets. Investing in frontier markets is a good way to ensure future profits.
Which Countries Are Considered Frontier Markets?
Currently, twenty-nine countries are classified as frontier markets.
Argentina – Argentina is now a G-20 nation.
Bahrain – The Qatar – Bahrain Friendship bridge will link these two countries soon and will be the longest “fixed link” on the planet
Botswana -The World Bank has classified Botswana as one of the world’s greatest frontier markets.
Bulgaria – Bulgaria became a full member of the European Union on January 1, 2007
Croatia – Croatia is a high income country, and is a candidate for membership in the EU.
Estonia – Although Estonia enjoyed considerable growth in the recent past, it suffered tremendous market contraction during the recent economic downturn.
Ghana – Ghana is one of the most economically sound countries in Africa
Jamaica – Since 2006, Jamaica has enjoyed steady growth.
Jordan – Jordan has close ties to the US, UK, and France
Kazakhstan – Kazakhstan is considered to be the dominating Central Asian state.
Kenya – Kenyan economic growth was 7.2% in 2007
Kuwait – Kuwait has the world’s fifth largest oil reserves
Lebanon – Lebanon is undergoing reconstruction.
Lithuania – Prior to the current financial crisis, Lithuania had one of the fastest growing economies of all EU nations.
Mauritius – Since 1968, annual growth has been around 5-6%.
Nigeria – IMF has projected over 8% growth for Nigeria in 2009
Oman – On January 1, 2009, Oman entered a free trade agreement with the United States.
Pakistan – Pakistan barely avoided bankruptcy during 2008 and needed international aid.
Qatar- Qatar has the second highest per capita income in the world.
Romania – Romania is an upper-middle-income country.
Trinidad and Tobago- Trinidad and Tobago have maintained steady economic growth.
Saudi Arabia – Saudi Arabia is an energy superpower.
Serbia – Serbia is a candidate for membership in the EU
Slovenia – Restrictions on foreign investment are being reduced.
Sri Lanka – Sri Lanka is a world famous tourist destination.
Tunisia – Diverse economy and some growth make Tunisia one of the frontier markets to watch.
Ukraine – GDP averages 24% annually.
United Arab Emirates – Classified as a High Income Developing Country by the IMF
Vietnam – Joined the World Trade Organization in 2007