Tag Archives: Middle East

The Opportunities for Investment in the Middle East Infrastructure Industries

It has become an open secret that the most part of the Arab region has only been good for the construction sector and concerns of oil wealth distribution in that sector are beginning to be raised. The region’s largest opportunities lie with Saudi Arabia where the government is focused on a country wide infrastructure investment that is set to diversify the income streams of the nation, which might bring liberation from the oil dependency. Annual investments have been well above $150b although these are strained by rapid economic and population growth in the region.  The fundamentals of population growth and welfare are the major drivers behind this boom in construction as opposed to others lie the Dubai boom.


Drawing the focus to Qatar, a large amount of infrastructure, stadiums, housing etc. need to be put in place as it prepares for the world cup to be hosted in 2020. The supply challenges that are anticipated are evident and in this regard the rest of the region is likely to benefit immensely from this. UAE ‘will see a steady increase in investment in publicly funded projects and also to a lesser extent the privately funded projects. Take this for instance, though recent investments in Dubai hotels have been firmer, the hotel occupancy reached 81.8% in 2011 driving further investment in the tourism sector.

Beyond the Gulf opportunities exist, but only for those willing to commit and see their investment through their respective cycles. The wider Middle East region has dynamic investment opportunities with Iraq and Libya being some of the two most outstanding examples in that area. Construction of Housing in Iraq is on the rise and ministers and other government officials have been invited investor to participate in the construction. Competition for the traditional American contractors has been very stiff and in this regard, Far East powers like Korea have been pushing hard into the market with a competitive edge in their pricing. Therefore, it implies that the Western Countries have to come to speed with themselves and the kind of quality they are going to offer in order to stay in the loop as top contract holders in this region.

Western economies that are heavily indebted, this can be a way to raise and recover from such a situation considering the Middle East is highly liquid because of its trade in oil. Conclusively there are challenges that are brought about by investment, in spite of the political risks of the Middle East, and it is a matter of cost and benefit analysis of the investment but the opportunities are there.


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The Advantages of the Emerging Mining Industry in the Middle East

The growth of the mining industry has brought about lots of positive impact to the Middle East region. As evidenced in the growth of the oil sector, there is always a potential for the growth of other sectors because they depend so much on the growth within mining either directly or indirectly.


The presence of foreigners in this region has brought about rapid growth which is always associated with many people coming together. There is always a change of ideas, learning is promoted and new trends in life are set. There is a general awareness of the different resources that are within the region that the natives here didn’t see them as useful, but now they appreciate that thanks to the migration of people in the Middle East. The influx of aliens in the region has also helped to spearhead the growth of other sectors within the economy like construction and real estate. There is constantly a need to put up some new infrastructure to cater for the increase in population characterized by the influx of aliens. Social centers, hospitals, schools, sports centers, hotels are among the infrastructure that have really benefited from the influx of foreigners into the Middle East.

Standards of living are also on the rise as most of the aliens come from regions that are ahead regarding living standards. The Western system of life which strives more on value for money which is based on strict service delivery for money taxed has gotten an upper hand and these governments are busy replacing their old systems with these new systems. Mostly, the Westerners have imparted a general awareness about the rights of individuals in the society hence making them take their leadership to task. This has resulted in leaders taking charge in bringing about a lot of development in a short span of time. Educational standards have also benefited by getting uplift. The emerging industry has come with an increased demand for professionals who are being produced abroad. Upon returning home, they have a positive impact in the society.

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