Investors are turning away from Brazil, Russia, India and China (Bric) in favour of the Middle East and North African (Mena) stock markets.
According to Alexander Shalash, head of emerging market equities at Swiss wealth management firm Julius Baer, Mena is providing an attractive alternative to countries in the Bric region.
He told the Times that "North Africa has 'come of age'" with a rash of inward investment providing a positive economic outlook.
"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," he said.
Several Mena countries have enjoyed strong economic growth over recent months. Morocco has enjoyed growth of eight per cent this year, while Egypt and Tunisia have recorded growth of seven and six per cent, respectively.
However, caution has been advised to investors looking at the Egyptian market where a 51.5 per cent rise in the stock market from August to April was offset by a fall of 20.3 per cent.
Oliver Bell from Pictet's Mena fund, added to the Times: "Egypt remains a worry, although clear value opportunities are appearing and some of the froth appears to be coming out of the more expensive regional markets and stocks."