Middle East: Time to bring the money home

If Arab states are to build industrialized trading economies on their oil wealth they will need internationally accessible capital markets trading a full range of financial instruments. Without these, Arab funds abroad - let alone foreign capital - are unlikely to flow in. Nigel Dudley reports.

Belatedly, Gulf states are realizing that a financial revolution is required – involving governments, regulatory authorities and banks – if the region is to be competitive in a market-driven global economy. There are signs of a readiness to create a regional capital market and to examine the size and role of Arab banks in a world increasingly dominated by massively capitalized financial institutions.

The traditional approach of protected trading markets and closed financial markets is becoming unsustainable because of the revolution in international business.

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