Adnan El-Araby Advises Investing in Emerging EMEA Markets
Strategist highlights overlooked regions as Asian markets dominate the MSCI index.
Updated on Oct. 27, 2026 in Investing
Live Poll
Is now a good time to diversify your investments beyond the largest Asian emerging markets?
As of October 27, 2026, investment strategist Adnan El-Araby recommends that investors look toward emerging EMEA markets for opportunities. He notes that Asian markets currently hold an outsized share of the MSCI emerging markets benchmark, leaving other regions undervalued.
Why it matters
Asian markets account for 80% of the MSCI benchmark, which can lead investors to overlook significant potential elsewhere. Diversifying into Eastern Europe, the Middle East, and Africa allows investors to capture growth driven by political shifts and economic development.
Asian emerging markets account for 80% of the MSCI benchmark, including 50% from Taiwan and South Korea and 30% from China and India. The Barings Emerging EMEA Opportunities Trust currently holds 30% in South Africa, 23% in Saudi Arabia, and 12% in the UAE.
The players
Adnan El-Araby
He is an investment strategist who provides professional analysis on emerging market allocation.
Barings Emerging EMEA Opportunities Trust
This investment trust focuses on securities markets across Eastern Europe, the Middle East, and Africa.
The details
Investors can access these markets by identifying companies in sectors including banking, infrastructure, and renewable energy. Countries like Poland and Hungary show particular potential, while Hungary is expected to see increased innovation following recent government policy plans.
Timeline
2024: South Africa appointed a Government of National Unity.
October 27, 2026: Analysis regarding EMEA market opportunities is published.
Market Dynamics
This strategy marks a departure from the concentration found in the MSCI emerging markets index, which is heavily weighted toward Asian growth. By shifting focus to EMEA, investors may hedge against the dominance of Asian markets while capitalizing on localized economic developments.
Retail investors should review their current exposure to emerging markets to see if their portfolios align with the 80% Asian market concentration of the MSCI benchmark. Diversifying into regions like the Middle East and Africa could potentially provide access to untapped growth sectors.
The takeaway
Investors looking for growth outside of dominant Asian markets may find value in the banking and energy sectors of emerging EMEA countries. Maintaining a diversified approach helps mitigate the risks associated with index-heavy geographic concentration.
Further reading
For more on international asset allocation, visit our guide to Investing.
Source note: This article includes information reported by MoneyWeek.
Live Poll
Is now a good time to diversify your investments beyond the largest Asian emerging markets?
