Though it was agreed in June that European banks will write-off 21 percent of their investments in Greek sovereign bonds, euro zone finance ministers repeatedly discussed this issued taking the haircut up to 60 percent. This will allow Greece to have 100 percent debt-to-GDP ratio by 2015. Banks replied that they are willing to take up to 40 percent losses, and yet negotiations are still undergoing.

As a result, European banks will require a lot of capital. The estimate for European capital needs due to the write-off was brought down to a little above 100 million euros. Moreover, we are not counting in the capital needs that will result of the Basel III rules that will start rolling in 2013. In other words, European banks need a lot of cash, and this cash can come from two sources only: Emerging markets sovereign funds and European governments. The later choice is very costly, taking into consideration that it will burden these governments with additional requirements, especially the French that is on the verge of losing its legacy AAA rating.

European banks re-capitalization will turn first to foreign investors, but not all are welcome. There are few concerns about Chinese influence, especially after its big purchase of Italian bonds in the last auction. When Dexiea's Belgian unit failed, the Qatari sovereign fund reported its interest in taking a stake in the bank, but the Belgian government rescued it.

This is a chance for GCC sovereign funds to benefit of. In addition to the expected returns on investments, which may not be high enough, it is a chance to grow the region's influence in the world's economy. If the world's economy slips into another recession next year (Dr. Roubini says its definitely happening), the euro zone will be the best-equipped area, in terms of financial structure, since it's starting the reform early in the game. Even if not, the euro zone will emerge stronger out of its crisis.

Saudi banks can also benefit off this opportunity as private investors. Buying stakes in small and medium size banks will open the gates for them for new markets that are willing to accept Islamic banking. The experience Saudi banking sector had in the 80s and 90s in transforming its operations into Shariah-compliant services makes it even easier for them to do it once again in Europe. Such step will give Saudi banks easier access to foreign capital market, though it is undergoing a lot of turbulence right now, but once it stabilize, it will come in handy. The mandate of ECB will give assurance of minimal losses on currency which, though of the ongoing crisis, is still strong.