Gleb Diachkov-Gertcev on how to reach beyond the usual hubs to find new pools of investment
As IROs look beyond traditional financial hubs to diversify their shareholder base, the Middle East represents a new and strategic capital venture. But with sovereign wealth funds, family offices and institutional investors playing an increasingly influential role in international markets, many companies still find the road to meaningful engagement in this region unclear.
Ahead of this year’s IR Impact Forum – Greater China, Emsteel Group’s Gleb Diachkov-Gertcev shares practical insights for IROs looking to break into this high-potential market.
You have more than 10 years of experience in IR and are currently based at the largest steel manufacturer in the UAE – how did you get into the profession?
I am originally from Russia, with a background in international relations. Early in my career I focused on attracting foreign investment to my home town of St Petersburg. My first IR role was with one of Russia’s major real estate developers. Over time, I progressed and later became head of IR at the world’s largest aluminum producer outside China. It was a highly intensive IR environment, with listings in Hong Kong, Moscow and Euronext Paris. In some years we met up to 1,000 investors.
Since 2022, I have been in Abu Dhabi in my current role at Emsteel Group in Abu Dhabi, where I was tasked with building the IR function from the ground up – and now we are a team of three. In my current role I would meet on average around 250 investors annually and overall, the role is a great opportunity to apply my knowledge and experience.
What importance does cultivating strong relationships with companies in the Chinese market have in the Middle East?
It’s an opportunity to bridge two fast-growing markets. Cultivating strong relationships with Chinese companies is crucial in the Middle East because the region’s investment culture is trust-based, seniority-driven and requires repeated engagement.
The large sovereign wealth funds in the Middle East are sophisticated in their investment strategies, but it seems that many are still open to considering deeper, more direct exposure to China. Similarly, smaller family offices and local mutual funds are less familiar with the regulatory environment in China (and Hong Kong specifically) but are open to additional guidance to drive their investment decisions.
Success in acquiring long-term capital from the buy side in the Middle East depends on sustained relationship building and direct involvement from top leadership.
How do investor expectations in Asia differ most from those in the Middle East?
Compared to many international investors, a large part of institutional investors in the Middle East favor strong dividend programs. Dividend yields in regional markets are often higher than in many developed markets and investors are used to owning large, liquid names that combine growth with regular payouts. They have exposure to a local market saturated with public companies that pay, which presents a higher barrier to entry.
Additionally, investors prioritize clarity of strategy and alignment with government priorities, such as economic diversification, technology or energy transition. When engaging investors in the Middle East on Hong Kong-listed stocks, what would benefit their understanding and interest is explaining your regulatory environment, relevant indices and region-specific market drivers.
It’s important for IROs to consider the cultural or communication nuances required when approaching a new market. What should they bear in mind in the Middle East?
In the Middle East, serious investment decisions are usually the result of a relationship built over time rather than a single roadshow meeting. You should expect multiple interactions, around five to eight interactions – perhaps through conferences, one-on-ones and site visits – before a large transaction is approved. It is quite normal for meetings to include some additional time dedicated to broader topics, not immediately related to your investment case.
Additionally, some cultural nuances may be present. Investors may not always express disagreement directly in the room, so reading between the lines and following up afterwards is important. Relationship-building is a long-term strategy that involves matters of seniority. For example, hierarchy is respected and the best way to engage is to have senior management teams lead the conversation at key meetings.
In practical terms, when arranging roadshows around the Middle East, IROs should consider holiday and culture as an important factor: specific seasons such as the month of Ramadan have shorter traditional working hours and many social interactions shift to the events taking place after sunset.
If you had one piece of advice for IR teams exploring the Middle Eastern market, what would it be?
Match your most senior, credible spokesperson with the right decision-makers on the investor side and deliver a concise story with focus on reliable dividend distribution or growth strategy that aligns best with this particular investor’s portfolio strategy. The best way to formulate a reason to invest is through strategy that the investor you’re addressing will clearly understand.
Want to learn more? Gleb will be speaking at the upcoming IR Impact Forum in Greater China on December 4 at the Conrad Hotel, Hong Kong, for the panel titled ‘Roadshows and beyond: Tailored engagement strategies to reduce concentration risk and build your investor base’.
Click here to get your ticket now.
