Funds investing in the Middle East and North Africa could be the next hot spot for investors seeking high returns in emerging markets, as some report returns in excess of 50 per cent.

“Funds are likely to see increased interest in the region through investor rotation as they look for the next place to make money,” said Randal Goldsmith, a fund analyst at Standard & Poor’s Fund Services. “In 2007, the focus was on the emerging market leaders, the Bric countries [Brazil, Russia, India and China]. Frontier markets could be next.”