China's PBC issues 449.2b yuan off reverse repo    H. Kong exports to Asia surge in June '25    H. Kong's trade volume jumps in June '25    Egypt's anti-drug body launches new awareness phase in Maspero Triangle    Agiba Petroleum starts production from Arcadia-28 at 4,100 BOE/day    Minister El-Shimy pushes for stronger returns, partnerships in real estate, construction sectors    Apparel, textile chambers engage with Chinese delegation to explore investment opportunities in Egypt    Egypt reviews health insurance funding mechanism to ensure long-term sustainability    Obama calls for aid access to Gaza, says 'no justification' for withholding food    Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Egyptian president follows up on initiatives to counter extremist thought    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Confidence returns to Middle East investment
Published in Daily News Egypt on 15 - 10 - 2010

DUBAI: Middle East governments and companies are raising cash again from debt and equity markets, while solid oil prices and improving economic fundamentals are helping the region recover and restructure.
Yet even as the region regains its footing after the global financial crisis, political tensions and concerns over security remain a nagging worry for investors in the region.
Top executives and officials will address these and other aspects of the Middle East financial climate at the Reuters Middle East Investment Summit in Dubai, Riyadh, Cairo, Beirut and Baghdad on Oct. 18-20.
"The outlook is better than a year ago, though investment levels are still well below those seen in 2005-8," said economist Simon Kitchen at investment bank EFG Hermes, referring to Egypt's investment climate.
"Political uncertainty may also be discouraging some investments by local and foreign businesses. Investors want consistency on policy," Kitchen added.
The investment climate in the Gulf region is improving on the back of strong oil prices, expansionary spending by governments and a revival in project activity, analysts say.
"The shortcomings of the region are very short-term in nature and problems in the real estate and banking sectors are being worked through. There is light at the end of the tunnel," said Paul Cooper, managing director at Sarasin Alpen and Partners in Dubai.
More cautious
State-owned conglomerate Dubai World's $25 billion debt deal last month has eased concerns over the Gulf emirate's debt woes, with developer Nakheel builder of man-made islands in the shape of palms, next in line to restructure.
In another sign of better times ahead, UAE retailer Axiom Telecom this week announced plans to list a 35 percent stake on the Nasdaq Dubai market, the first IPO from the Gulf state in two years, which could spark a revival of the region's IPO market.
Outside the Gulf, banks in Egypt and Lebanon have emerged from the economic crisis relatively unscathed, with both states expecting strong economic growth.
In Egypt, the government expects growth of at least 6 percent in the fiscal year to the end of June 2011, up from 5.3 percent the previous year.
It is hoping for foreign direct investment of $9 billion, rising from $6.8 billion, but analysts say many investors still balk at weak transport infrastructure, frequent power cuts and an education system that fails to develop the skills they need.
Lebanon is expected to record economic growth of 8.0 percent and forecasts 5.0 percent growth next year.
But Lebanon is one of the world's most highly indebted countries and servicing over $50 billion debt consumes a major part of the budget.
Growing political tension over an international investigation into the 2005 killing of former premier Rafik Al-Hariri has prevented the unity government from implementing reforms or getting the 2010 budget through parliament.
If tensions escalate into sectarian violence many Lebanese could withdraw their savings and the Lebanese pound could come under pressure. But the country has bounced back quickly from previous conflicts.
Political and security tensions also run high in the Gulf with concerns over Iran and last month's broad crackdown by Bahrain, which arrested Shia opposition leaders accused of trying to overthrow the Sunni monarchy.
Plenty of issues then to discuss at next week's Summit, which will feature interviews with top executives at banks, property firms, investment houses and other corporates as well as high-ranking government officials in the region. –Additional reporting by Tom Pfeiffer in Cairo and Dominic Evans in Beirut


Clic here to read the story from its source.