Middle East still a good bet for investors

The Middle East still has future potential that should be attractive to investors, a report says.

The report, released by the brokers and investment advisory firm Stanford Group Company (SGC) says that global demand for oil combined with increasing trade liberalisation has resulted in rapid economic expansion.

This trend is set to continue, creating many attractive investment opportunities, particularly in the United Arab Emirates (UAE), Qatar and Bahrain.

"It is clear that the GCC is in the midst of an economic boom as they reaped $300 billion in oil revenues last year which has, in turn, helped to convert desert towns into some of the fastest growing cities in the world," the report comments.

As a result, the construction industry has been booming in cities such as Dubai, with foreign construction companies cashing in.

Several Middle East states have signed trade agreements in recent months, including the recent free trade agreement between Bahrain and the US, and Yemen's signing of eight separate agreements with China.

Japan and India are both currently negotiating with Gulf states in order to dismantle trade barriers which have previously been obstacles to foreign investment.

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