MANAMA, 17 September 2007 — An overwhelming majority of Western investors are interested in enhancing the size of their investments in the Middle East in next three years, a survey conducted by Economist Intelligence Unit has revealed.
According to findings of the survey, Western banks expect to develop their asset management operations in the Middle East, but concerns about regulatory environment persist.
Concerns about the geopolitical environment remain high on the agenda for many in the sector, with 71 percent citing this as significant. Almost 60 percent of respondents say that they expect a substantial increase in demand for Islamic finance products over the next three years, and a growing proportion of respondents say that they expect at least some of their products to be Shariah-compliant.
With the provision of banking licenses becoming more commonplace, it is likely that more and more foreign banks will take the branch license or representative office approach. The survey forms the basis of Asset Management in the Middle East: the prospects for global financial institutions, a newly released EIU report.