Gulf Cooperation Council (GCC) Countries Local Equity Models - Research Notes

Mar 2, 2009

This document contains research notes for three new Barra single country equity models: the Kuwait Equity Model (KWE1), the Qatar Equity Model (QAE1), and the United Arab Emirates (UAE) Equity Model (AEE1). Assets in these markets are included in the latest version of Barra Integrated Model (BIM207), via these new models. Along with our existing single country models for Bahrain, Oman, and Saudi Arabia, these new models complete our coverage of equities in the six Gulf Cooperation Council (GCC) countries. Part one of this document describes the risk characteristics of the six GCC equity markets. Part two focuses on the three new models' estimation universes and industry and style factors. Part three presents the bias test results for the GCC regional market and discusses the models' performance.