Monday, 13 June 2011

Mideast Borrowers Return to Loan Market After ‘Arab Spring’ - Businessweek

Sabic Capital, Commercial Bank of Dubai, and Investment Corp. of Dubai are leading a 43 percent increase in lending to Middle Eastern companies as political unrest in the region wanes.

Middle Eastern borrowers are in the market with $5.5 billion of loans, which if completed would bring second-quarter volume to $11.5 billion, according to data compiled by Bloomberg. That compares with $8 billion raised in the first quarter.

Companies are returning to the market after the so-called Arab Spring toppled autocratic leaders in Egypt and Tunisia. The cost of insuring Egyptian debt against default tumbled to the lowest since Tunisian ruler Zine El Abidine Ben Ali fled following weeks of protests against unemployment, corruption and dictatorship in January. President Hosni Mubarak of Egypt resigned less than a month later.

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