Is this the time for Middle East investment? Many would say not as civil war rages in Libya, civil unrest has risen throughout the region, and society has risen against generations of repression in Syria. The old blood in the streets quote from Baron Rothschild comes to mind here. When everyone is scared off from investments is when prices are lowest. It typically takes a bit of research to determine which investments in a chaotic investment arena hold promise. However, there are always companies that survive societal chaos. Certainly US, European, or Asian multinationals that have business in the Middle East or engage in Middle East Investment may see their stock prices drop in these days. These companies will not disappear as they have businesses across the globe. They will typically weather the storm in any given country and be there when events sort themselves out again. Middle East investment in properly chosen vehicles could lead to long term profits in a stable society down the line. Learning how to invest in the Middle East will take a little time but could be profitable.
What is a good investment in the Middle East? Oil certainly comes to mind as the major product exported from the Middle East. Olive oil may also be an up and coming export from the Middle East and North Africa as world demand increases and the major European exporters, Spain, Italy, and Greece have virtually no more production capacity. Companies selling products to the Middle East may suffer as events unfold today but everything from consumer goods to high end electronics will always be in demand as the current chaos resolves itself and consumer markets strengthen again. Middle East investment can be direct or indirect. It can be in companies that do business in the Middle East or companies that set up investments in this region. Certainly an investment group with assets on the ground in these societies will be best positioned to profit as events unfold. Investing in such companies will require that the investor be satisfied with the Middle East investment plan and the competence of the principals of the company. The investor will also want to be assured that profits from any Middle East investment that the company makes are fairly distributed and not diluted by excessive management fees and executive salaries.
For anyone interested in Middle East investment Israel should not be overlooked. This is a politically stable society with a European or North American level of competence in its business dealing and technology. The country functions under the rule of law so that contracts are enforceable. Many companies in Israel are, in fact, listed on US stock exchanges as American Depository Receipts. Because Israel tends to sell its products to a wider market its businesses will, in theory, be less affected by chaos around its borders. What is the first step to investing in Israel or else where in the Middle East? The first step is homework. The investor needs to have a clear idea of what the possibilities are in the area. Then he will need to assess market sentiment in order to look for investment bargains in the current day. As always we are not recommending Middle East investment or that the investor ignore opportunities in the region. We suggest that investor look for, explore, and exploit opportunities as they present themselves.