The assets of Middle East countries with banks in the OECD countries fell by 4 per cent between the first and second quarters of this year, according to new figures published by the Bank for International Settlements (BIS). The changes in the BIS figures, which cover all sectors of a country's economy, mainly reflect a 5.5 per cent fall in Saudi assets placed with OECD banks and an increase in Turkish overseas borrowing.

At the same time, oil prices have continued to hold reasonable levels, enabling oil exporters Iran and Algeria to continue to lower their foreign liabilities. Both countries are still net borrowers from OECD banks but Algeria has cut its foreign bank borrowings by more than half since the end of last year. Iran's foreign assets and liabilities are almost in balance again, as they were at the end of last year, after a brief rise in the first quarter. Elsewhere in the region, the figures were little changed from the first quarter. Egypt's large foreign reserve position continued to strengthen.