It is no surprise that international banks dominate MEED’s list of the region’s biggest project finance advisers in 2007.
Although the collapse of the US sub- prime mortgage market, and the mid-March collapse of US investment bank Bear Sterns, is hitting the reputation and capacity of many of the world’s biggest financial institutions, it is the scale of global giants such as HSBC, Citigroup and The Royal Bank of Scotland (RBS) that puts them in such a strong position.
It is only these institutions that have had the professional and financial capability to put together the multi-billion-dollar debt packages required in the region. Currently, local banks are unable to compete at this level. But the market is shifting.
The rapid expansion of the region’s project sector provides an opportunity for local institutions to take a far greater role in project finance, and governments in the region are keen for local institutions to raise their capital levels through mergers, acquisitions and listings.
The growth of the Islamic finance market presents another opportunity for regional banks. Borrowers seeking sharia-compliant finance prefer to obtain it from local Islamic institutions. But unless such banks make efforts to grow their assets, international firms will maintain their market-leading position.
Special Report: Banking - Index of all stories
Data: Major project financings in the Middle East
MEED lists the Middle East’s top projects financings from the year 2006 to dateA lack of liquidity
Analysis of the region’s project finance marketSharia deals enter mainstream
Sharia-compliant structures are becoming increasingly commonTight market hits big deals
Demand for financing of billion-dollar-plus projects is increasing but difficult to raiseRising costs delay projects
Basic infrastructure such as power is more urgently needed than commercial industrial schemesRiyadh puts the markets to work
Saudi projects are raising capital through initial public offerings, reducing the need for debtFunds struggle to deliver results
Investment funds targeted at infrastructure promise returns of more than 2 per cent, but achieving this will be toughCredit agencies set for bigger role
The role of government credit agencies is growing as new sources of liquidity are neededCommentary: Lack of dollars will delay deals
Bankers watching work dry up are getting increasingly pessimistic
You might also like...
TotalEnergies to acquire remaining 50% SapuraOMV stake
26 April 2024
Hyundai E&C breaks ground on Jafurah gas project
26 April 2024
Abu Dhabi signs air taxi deals
26 April 2024
Spanish developer to invest in Saudi housing
26 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.