Trowers & Hamlins take 29 per cent share of booming Gulf project financing market

The Gulf project finance market was worth $14.5bn in 2004. (Source: Middle East Economic Digest).

Martin Amison, Head of International, Trowers & Hamlins, comments: "The firm has successfully built on its expertise in this crucial, growing market and advanced its position as a key player in facilitating the arrangement of finance for major infrastructure projects in the Gulf."

"Project financing activity is going through a sustained period of growth in the Middle East, where government finances are benefiting from high oil prices."

Trowers & Hamlins says that Gulf investors have moved away from their preference for US equities and are investing closer to home, which is strengthening the lending power of local and regional banks.

The Top 100 Arab banks showed 6.5% growth in capital to $53.9bn and 16.4% growth in pre-tax profit to $8.8bn. (Source: The Banker).

"As long as Gulf states continue to diversify their economies, the project financing market should continue its strong growth," says Amison.

Trowers & Hamlins says that small projects are increasingly financed exclusively by regional banks, either conventionally or in compliance with Shari'ah law. Large-scale projects usually still rely on western backing but governments are now frequently offering incentives so that a component of the funding is Islamically structured..