Gulf keeps project finance flowing

* username: rupertbu

A credit drought may still be discernible in many parts of the Arab world, potentially hindering economic resurgence, but bankable development projects are finding lenders willing to do business.

Last year, projects in the Middle East and Africa raised $39.7bn, making it the world’s third-largest market for project finance, after western Europe and Asia, according to Dealogic.

The six states of the Gulf, excluding Yemen, accounted for nearly half this amount, about $15bn. Though this was down from $16.4bn in 2008 and $22.7bn in 2007, and large swathes of property developments have been cancelled, low-key but essential projects are proceeding.