Middle East Research 2009: A local presence is crucial

IT HAS BEEN a difficult year for leading Middle Eastern financial institutions. Following the collapse of the housing and credit markets, as well as the steep decline in the oil price, some prominent investment banks in the Gulf Cooperation Council countries have found themselves struggling to meet their debt obligations. In light of these difficulties, it is likely that these broader problems are affecting the functioning and profitability of their core businesses.

As many of these Gulf firms are facing severe financial strain – and, in some cases, fighting to survive – it is interesting to examine what effect these circumstances have had on their analytical capabilities, as well as on their international reputations as equity research houses.

Global Investment House and Shuaa Capital are two big names in the regional financial industry that are coping with an...