Putting out green shoots

Equity markets in the Middle East are growing up. Although the crisis in Asia, falling oil prices and Russia's economic problems have made investors skittish recently, foreign investors are taking a growing interest in markets that have become significantly broader and deeper in recent years. Most of the region's exchanges have enjoyed significant growth in market capitalization since 1995. Locals continue to account for most investment on these markets but the numbers of foreigners are growing substantially. Local brokers are confident that when international investors overcome their nervousness about emerging markets they will begin to take a significant interest in the stock markets of the Middle East.

There are 11 stock exchanges in the Middle East including Israel. Egypt has two and there are others in Saudi Arabia, Lebanon, Kuwait, Jordan, Oman, Bahrain and Qatar. The biggest listed companies, by market capitalization and turnover, continue to be in banking, chemicals...