Posts Tagged ‘Middle East’

Middle East Investors See Good Deals Globally

Thursday, February 4th, 2010

Middle East investors shopping in Europe and the Far East.Capital is flowing out of the Middle East and being invested in real estate across the globe, according to Nicholas Maclean, Managing Director, CB Richard Ellis, Middle East. “The outflow of capital from the Middle East to be invested into real estate properties worldwide has been higher than the influx of global capital into real estate properties in the Middle East.  The UAE, in particular, has been looking to diversify its investments and part of the reason has been the lack of transparency within this region.”

Europe and the Far East have received the lion’s share of Middle East investment, with India and China perceived as strong growth markets.  Additionally, United Arab Emirates capital is being infused into Abu Dhabi’s office and hospitality sectors.  “Capital spent as FDI into real estate within the Gulf Cooperation Council represents only 11 percent of the total.  Cross-border activity in the world has exceeded 50 percent and so we have a great opportunity to be the recipient of more investment,” Maclean said.

In terms of where the Middle East is placing its investment dollars globally, “London, Paris and Germany have been the largest recipients in Europe while Hong Kong, Singapore and Australia saw the largest inflows in the regions in the Far East.  Knowledge and liquidity have been the key driving forces for the Middle East investors transferring capital to these areas.  Institutional investors from the Middle East are investing in commercial developments in these markets while individual investors are looking at residential properties in the UK,” Maclean said.

To learn more about the Middle East and its real estate market, listen to Rochdi Younsi, director in the Middle East and Africa practice of Eurasia Group, analyze the major players in real estate and the new investment opportunities in the Middle East.

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Rochdi Younsi: Doing Business in the Middle East

Tuesday, September 22nd, 2009

With 28 million people and a $376 billion economy, Saudi Arabia provides its citizens with subsidized goods, services, healthcare, housing and education to assure a stable political system and long-term allegiance to the House of Saud, according to Rochdi Younsi, director in the Middle East and Africa practice at the Eurasia Group.  An expert on the Gulf Cooperation Council, Younsi has been featured on CBS’ “60 Minutes” and on National Public Radio.

viewThanks to its oil revenues, Saudi Arabia is building new cities such as the $26 billion King Abdullah Economic City, and hiring American contractors and consultants to construct this sustainable metropolis on the Red Sea.  The vision: to create modern cities in which various major corporations will be headquartered.  The payoff:  approximately 1,000,000 new jobs for Saudi nationals.

Cash-rich Kuwait, which recently invested $800 million buying the Chrysler Building, has a $138 billion economy and $200 billion in reserves.  According to Younsi, Kuwait is fascinating because it depends heavily on oil production and export to finance its Kuwait Investment Authority, which was established in the 1950s.  The nation’s democratic system of government can be both an impediment and an advantage because it includes a parliament with real legislative powers and the ability to redesign the emirate’s economic strategy - which can mean gridlock.

Dubai, by contrast, has a $37 billion economy and is $100 billion in debt, following its building boom to establish itself as the Middle East’s financial hub.  Younsi says it is important to not think of Dubai as an independent nation because it is one of seven emirates comprising the United Arab Emirates.  Dubai lacks energy resources and is dependent on revenues it receives from the larger and wealthier Abu Dhabi, which is rich in oil and gas.

Eurasia Group is the world’s leading political risk and consulting firm that helps corporations make informed business decisions in countries around the world.

 
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The Rich Still Are Different

Thursday, September 3rd, 2009

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The wealth of the world’s high-net-worth individuals (HNWIs) declined by nearly one fifth last year to $33 trillion, according to the 2009 World Wealth Report from Merrill Lynch and Capgemini.  A HNWI has at least $1 million of assets besides a primary residence, its contents and collectible items.  In 2008, the number of HNWIs fell to 8.6 million, or slightly more than 0.1 percent of the world’s population.

Their wealth declined by more than 20 percent in North America, Europe and Asia, and by a bit less in Africa and the Middle East.  Latin America’s rich were the least affected: they lost just six percent of their wealth, and the number of HNWIs there fell by less than one percent.  In North America, which had a large proportion of people just above the $1 million threshold, the ranks slimmed by 19 percent.

An interesting aside:  That $33 trillion is almost half of the $70 trillion that constitutes the subset of global savings known as fixed-income securities - or, all the money in the world.

Social Media Shines a Bright Light on Iranian Revolution

Tuesday, June 23rd, 2009

Generally, political events, unless they affect our industry, are beyond the purview of the AlterNow blog.  However, the news from the Middle East gives us pause because our country has become, quite remarkably, an actor in one of the most stirring displays of courage and political defiance in recent memory.  We may not fully realize it yet but the Green Revolution that’s taking place in Iran, beyond its political implications, is a singular event because it may be the moment of arrival for citizen journalism.traiill

Reading the tweets  from the streets of Tehran as protestors rail against an election that was probably rigged and the intractability of the theocracy of the mullahs is like entering an entirely new category of reporting.  It goes beyond the ground-level observations and interviews of even the finest reportage to deliver something close to a longitudinal study of mass consciousness.  Tweet after tweet renders a population that’s beaten, water hosed, tear gassed and doused in chemicals but also one that’s buoyed by rumors and made intrepid by the pain of others and the injustice of a repressive system.  It’s heartbreaking and stirring.  What’s also worth considering is that technology hatched in America - micro blogging - has delivered to this movement the power of instant expression and instant appeal to the court of world opinion.

Consider what this means.  In 1936, General Franco was able to silence Frederico Garcia Lorca and half a million Spanish Republicans during the Spanish Civil War by cutting off communication and having them executed.  From 1973 to 1990, Augusto Pinochet was able to blot out more than 1,000 Chileans by simple fiat, consigning them to a blind spot in the country’s collective memory.  No more.  The Iranians in the streets who are recording the remarkable events will not be “disappeared” by their council of dictators.  For the Iranian revolutionaries, social media has preserved that most sacred of human agencies — their voice and its claim on the truth.