Foreign investors are cautiously beginning to return to Middle Eastern markets, it has been claimed. Businesses and governments in the region are starting to raise cash and capital once again.
But foreign investment remains below its pre-crisis levels and much of the capital reaching the region is cash held abroad by Gulf governments that is being repatriated to fund local development projects, Simon Kitchen, strategist for EFG-Hermes in Cairo, told Jerusalem Post.
"In the Gulf, you have governments with big foreign financial assets, which they have been selling to invest in real assets in their own economies. Strictly speaking, that's not foreign investment, but it contributes to the figures," Mr Kitchen said. "Still, we've seen a recovery in Egypt and other countries of the region."
Investors have been drawn to the region thanks to low interest rates and excess liquidity in the developed world. However, the region still suffers from problems such as poor corporate governance and low levels of transparency that gives investors cold feet
, the news provider added.
- Monday 08 November 2010