Rafik al-Hariri

Confidence returns to Middle East investment

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.
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.
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.

Syndicate content