Wednesday, September 5, 2007

Investment Banks Can Capture Growth in the Middle East With Local Offerings

from MarketWire

According to The Boston Consulting Group's latest quarterly "Investment Banking and Capital Markets" report, attractive opportunities for growth lie in the GCC countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Corporate and investment banking revenues in the region exceeded $3 billion in 2006, with the United Arab Emirates and Saudi Arabia accounting for more than 80% of the total. Fixed-income products, including project finance and Islamic finance, are particularly attractive, given the capital requirements of large projects and the strengths of global players ... "Investment banks will need to adapt their operating models to suit the region," adds Schwetlick, a partner in BCG's New York office. "They should customize products to meet local needs -- perhaps by developing sharia-compliant offerings -- and establish a local presence to build credibility ... The report's performance index tracks the profits of ten leading investment banks -- Bear Stearns, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, and UBS.

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