Art and investment

Hussein Shobokshi As the Arab economies struggle to find new means to diversify their investment and income potential, art is increasingly becoming an interesting alternative and option. The Middle East contemporary art market is evolving as personal wealth and growing investment knowledge converge. The growing numbers of museums, art fairs, galleries, art funds and ‘advisors’ indicate a growing regional interest in art. Established institution such as The Fine Art Fund London has set up its headquarters in Dubai. Its chief executive Philip Hoffman said the fund saw the MENASA (Middle East, North Africa, South Asia) region as one the next areas of great growth in the art market, and one that is easily accessible to other growing market in Asia. From the regional art scene we have specifically seen a high global demand for female artists and more politically-motivated types of art forms, together with works that is evocative of place, landscape and culture. All art is swayed by global trends in prices and economic forces. As with much of the global art market trends, a large part of the art market boom is due to the growth of global wealth...many of whom have founded private museums and art spaces. A global art market cultivates value based on common indicators such as artists’ training, subject matter, gallery representation and links to historical and cultural heritage. Unlike all other asset classes, art continues to rise in value during the financial crisis. According to the FT’s Georgina Adam the contemporary art market has been growing steadily since 2004, with barely a flinch during the 2008-9 global crisis. She points out that it continues to grow, galvanized by the new players from giant art fairs to massively rich new collectors and emerging economies, as well as the changing roles of auction houses and galleries. As a result the perception of art as an attractive alternative has encouraged new buyers from emerging economies such as China, Russia, Qatar and UAE to join in. For the longest time art was ridiculed in the Middle East as a fluke but it is now emerging as not only a culture milestone but an economical one as well. Interesting signs of the changing times!