The Middle East and North Africa have seen considerable sterling inflows over 2008.
Brazil, Russia, India and China - otherwise known as Bric - are being increasingly shunned by savvy Western investors, the Times reports.
Instead, many "adventurous" shareholders are becoming attracted once more to Mena: the Middle East and North Africa, stock market data shows. For example, the Chinese market is down 38 percent for sterling investors so far in 2008 - while the Israeli and Moroccan markets have put on 4.8 percent and 5.5 percent respectively.
Additionally, growth in the Bric index from developing world market specialists MSCI has hit just 7.5 percent for sterling over the year, while the same firm's Arabian excluding Saudi Arabia index has put on 23.6 percent, according to Bloomberg.
Financial firms have been swift to react to this trend, with Baring Asset Management, launching a special Mena-based fund and famed wealth manager Julius Baer unveiling an investment vehicle focussed on Egypt, Morocco and Nigeria.
Alexander Shalash, head of emerging-market equities at Julius Baer, commented: "North Africa has 'come of age'. Local industries are developing thanks to inward investment and there’s more confidence due to economic reforms, a better banking climate and a growing credit sector."
Also speaking to the newspaper, Stuart Clark, at BDO Stoy Hayward, said: "There’s huge potential for [Mena] as it matures." However, the analyst had a word of caution for investors tempted to put significant sums in to the region.
"There’s considerably more risk from inflationary pressures, liquidity, transparency and [state] intervention," he added.
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