Mid East to see increase in private sector initiatives over next two years says Oxford Business Group

"The private sector is determined to play a larger role in the economies of the region and will jump at any chance to increase its involvement. To what extent, depends mostly on how much room new legislation offers them," said Andrew Jeffreys, Editor-In-Chief of OBG's Emerging Market Series.

"Most countries are making fundamental changes to their investment laws to make it easier for foreign investors to participate in their economies - we see this in UAE, Saudi Arabia, Qatar, Bahrain and Kuwait."

He adds that interest in the region from investors has exploded over the last three years and has seen Foreign Direct Investment levels soar.

"The world has started to take notice as many of the region's leading firms have begun to play more global roles. Most governments are speaking a similar language - finally listening to the private sector, looking to reduce government bureaucracy, cut back red tape, encourage FDI, privatise certain public assets and introduce competition," he added.

Jeffreys recently addressed the region's private sector role at the Middle East Capital Markets conference in New York, organised by the Arab Bankers Association of North America (ABANA), a non-profit professional association with members from the financial services industry in the Arab World and North America.

"The capital markets in 2004 and 2005 were a major boon to Gulf economies, attracting a lot of global attention. Across the board, banks have turned in record profits, with many heavily involved in lending for IPOs,"

explained Jeffreys.

"But though these are bright signs, it is essential that this is in context. The markets remain volatile, illiquid and much of the legislation remains untested. Moreover, these markets are small and will need to work hard if they are serious about becoming global players."