Click to Enlarge Play: Market Vectors Gulf States ETF
The first country with a promising trend is Kuwait. According to data from the United Nations, Kuwait’s dependency ratio slightly reversed from 2005 to 2010 after dropping for nearly three decades. Since then, though, the downward trend has resumed.
Plus, the proportion of the population that is dependent is projected to keep dropping until around 2025, and remain near that low for another half-decade.
While the country is slated to have a dramatic slowdown in economic growth this year thanks to political unrest, population data suggests that an uptick in the coming decades is more than possible if it gets such issues sorted out.
While it’s tough to get direct exposure to Kuwait, the Market Vectors Gulf States ETF (MES) is one option. Two of its top five holdings — Bank of Kuwait and Mobile Telecommunications Co. KSC — are Kuwait-based companies, while the other three are located in the United Arab Emirates, which boasts a similar demographic trend.