Gulf project finance may hit $30bn in 2010
Dubai, February 15, 2010
The Gulf market for project finance could reach $30 billion in 2010 on improved liquidity and increased lending, a banker at French group BNP Paribas said on Monday.
"There is a potential for $25 billion-$30 billion of large to medium-sized projects in the pipeline. It could be more if some of the large projects are completed," Christophe Mariot, head of project finance in the Gulf at BNP Paribas, told Reuters.
He said most of that volume would be accounted for by seven or eight projects currently planned, without elaborating. "I think banks are more cautious on mainstream lending or lending to corporates."
Gulf loan markets were hit by high profile defaults last year and profit at regional banks was burdened by provisions for bad loans.
Mariot said the market was big enough to accommodate banks, leading to little pressure on banks to bid at low prices. - Reuters
More Finance & Capital Market Stories
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn
- Bahrain banking sector on road to recovery
- GCC banks' outlook stable, says report
- GBSA panel names new chairperson