Gulf project finance market looking up: HSBC
Abu Dhabi, September 28, 2010
Project finance in the Gulf region is returning to pre-crisis levels with a positive short-term outlook, a senior banker at HSBC said at a conference.
'We are not yet back to previous levels but the project finance market is going to strength with 2010 and 2011 looking strong,' Michael Cooper, director of infrastructure in the Middle East & North Africa region at HSBC, said at the Meed conference in Abu Dhabi.
HSBC is currently financial adviser to some 25 projects ranging from utilities to energy and transport in the region, including several worth billons of dollars, he said, declining to put a value to the projects.
Banks curbed lending for projects in the Gulf due to the financial downturn.
HSBC is adviser to the Shuweihat 3, a power and water project of the Abu Dhabi Water & Electricity Authority as well as for Abu Dhabi's five rail projects. It is also advising Mubadala's aircraft parts manufacturing unit Strata and a solar project in Abu Dhabi.
Saudi Arabia, the United Arab Emirates and Oman are the best markets for project financing, he added. 'The percentage of projects using project finance will increase,' he said. - Reuters