Emerging markets will be responsible for 70 per cent of global growth in 2007, according to Globalis Investments chief executive David Dali.
Dali said with Taiwan and Korea expected to be pulled from the MSCI Emerging Markets Index, the economies of Brazil, Russia, India and China (BRIC) would have an even greater impact on index returns.
"Emerging market infrastructure will be a primary driver and is set to explode in the next 10 years, driven by rapid urbanisation in emerging market countries," he said.
Dali manages the emerging markets option for Macquarie's Reflexion Trust out of his base in the United States.
Merrill Lynch recently reported that US$1 trillion dollars of infrastructure money will fall into emerging markets over the next three years.
"Two weeks ago [diversified financial group] GE wrote that they expect that US$3 trillion will be channelled into emerging markets in the next 10 years," Dali said.
"It is also forecast that one million people per week will move from rural areas to the cities over the next 20 years, meaning a greater need for water distribution, electricity, roads, housing and telecommunications.
"Also, 96 per cent of all jobs created in the world over the next 40 years will be in emerging markets."
The sector is also becoming far more liquid, a concern many investors have traditionally voiced, he said.
"Infrastructure has now become far more liquid since the emerging markets came into play," he said.
