Mideast risk big concern for int'l investors

Attracting foreign investors to the Middle East private equity sector requires a higher return than what they can expect from their own markets as the region’s political risk remains an overriding concern despite strong economic growth forecasts.

“I personally met 120 global investors,” Karim el-Solh, chief executive officer of Gulf Capital, said at the Super Return Middle East 2009 conference. “And they were saying, ‘we are not going to come to the Gulf with our cash with risks (such as) Lebanon, Iran, Iraq for less than 25 percent’.”

Solh added: “Ideally they would like 30 to 35 percent. These are the kind of returns that will attract investors to this market.”