The Big Bang's slow burn in the Middle East
Tuesday, April 10, 2007 at 10:22AM
ARTICLE: "The New Frontier: Mideast; Stocks in Persian Gulf Outpace Other Markets," by Joana Slater, Wall Street Journal, 4 April 2007, p. C1.ARTICLE: "For Saudi Women, A Whiff of Change," by Karen Elliot House, Wall Street Journal, 7-8 April 2007, p. A1.
Watching Wall Street get more interested in "frontier markets" (I love that term) is really interesting. Most of these do not appear in global indices (good indicator of Gap-dom), but the overall trend is clear: greater transparency in local companies and more opportunities for foreigners to invest.
Big hold-up is Saudis keep foreign investment out of their companies. In general, the states there keep you out of the sacred energy sectors, so it's the other stuff that is opening up (banks, property, telecom--all nice infrastructure/connectivity-enhancing stuff).
Best recent sign? The Dutch-tulips-like bubble came and went and seems reasonably processed.
Even in Saudi Arabia, though, we find slim signs of progress. Despite being unable to drive, women are now being let into law school.
Little steps from big players, bigger steps from smaller players.
Connections to the Big Bang? Don't underestimate the sense of urgency created, or that feeling that things must change this time around or else.
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