Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stop Believing The 'Economy' Is The Same As The Stock Market - 12th Jul 20
Spotify Recealed as The “Next Netflix” - 12th Jul 20
Getting Ahead of the Game: What Determines the Prices of Oil? - 12th Jul 20
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

The risks of Investing in Lebanon

Stock-Markets / Analysis & Strategy Nov 17, 2006 - 08:41 PM GMT

By: Nadeem_Walayat

Stock-Markets

Following the withdrawal of Israeli forces in 2000, Lebanon experienced a boom in construction as the war ravaged country was rebuilt. A large amount of this reconstruction was destroyed during the war and reoccupation of Lebanon by Israel during 2006. More than the loss of infrastructure, the country has suffered a loss of financial confidence and a slump in stock prices, as once more Lebanon is destablised by political uncertainties as the country divides along religious lines such as the Shites, Sunnis, Druse and the Christians .

Beiruit Stock Exchange Index - The risks and rewards of Investing in Lebanon


As a result of the war, Lebanon's economy is expected to contract sharply this year, with the government budget deficit expected to grow sharply during 2007 as the country attempts to rebuild some of the destroyed infrastructure. The economy is forecast to rebound during 2008, but there are major political risks that are showing signs of the country once more drifting towards civil conflict between the countries major religious factions. With Iranian and Syrian backing for the Shiites (HIzbollah), who are demanding greater say in the government of Lebanon. Western government support for the Sunnis, Druse and the Christians, and a pattern of Israeli intervention in Lebanese affairs, the crisis could quickly become another proxy war.

On the plus side, countries have been lining up to donate millions of dollars towards the reconstruction of Lebanon, the latest being Italy which declared $38 millions towards the rebuilding of bridges. With foreign investment, especially from the arab world, to continue to flow into the country, as a consequence of the extra wealth generated by the high oil prices.

The Beirut Stock Exchange has lost some 35% this year, and continues to mark time whilst the political situation continues to cause uncertainty. However, this does represent a long term opportunity, IF another civil war can be avoided. And that is a BIG IF. If the civil war is avoided and the situation settles down then the prospects for Lebanon's growth are huge, as a financial and trading centre for the region.

How to get a foothold into Lebanon ?
the safest way would be via a unit trust fund or investment trust stock. Which manage investments in a range of companies in the country and thus spreading the risks. Though many of the existing funds such as the : The Lebanon Fund are fixed-capital closed-ended fund designed for the portfolio investor, requiring minimum subscriptions of $100,000. Banks such as HSBC do offer investment products that invest in the middle east including Lebanon as part of the portfolio, where low initial investments are taken of £5,000 or $5,000.

The favored sectors of the Lebanese economy are banking and finance, so a direct investment into one of the big banks is an alternative.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

mary cooper
28 May 09, 18:51
lebanon

how risky is it to invest money in Lebanon


RoryCrea
30 Aug 12, 07:48
Investing in Lebanon in 2012

Joe Faddoul from one of the IT leaders in Lebanon (BML Istisharat) claims that Lebanon IT is booming in an interview with Marcopolis accessible here http://www.marcopolis.net/lebanon-it-sector-is-booming-0407.htm. Maybe it would be worth it to consider this option....?


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules