Interpreting Middle East Economic News and Analyzing Market Trends

Archive for October, 2013

Indian Prime Minister vows not to impose capital controls then imposes capital controls

Indian Central Bank

Source: Live Mint

 

Since the rapid fall of the Indian Rupee, which has fallen nearly 20% against the US dollar this year, the Indian government and Central Bank have been struggling to stop the slide.  Their attempts have had some success so far, but it looks like they are resorting to capital controls going against previous promises not to do so.

 

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Israel: Saudi Arabia’s new friend in the Middle East

Abdullah-Mubarak-Asad

The good old days; King Abdullah (center) with his buddies, Mubarak (left) and Asad (right)

Saudi Arabia and Israel rarely see eye-to-eye publicly.  Now, however, both countries are openly aligned on Syria and Egypt.  They both support Egypt’s current military rulers and both are upset with the US for not bombing Syria and dropping its aid to Egypt.

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Middle East high tech startups take off

Silicon-Valley-Middle-East-2013

Source:  Smithsonian.com

The Middle East has been a hotspot for tech start-ups lately.  This growing trend has been overshadowed by all the bad news coming out of the region since 2011.  Don’t expect any competition to Silicon Valley any time soon, but entrepreneurship is catching on in the Middle East in a big way.  Political troubles are only adding more fuel to the trend.

 

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Is the Fed losing control of the market?

QE3 - 2012 to 2013

Chart Source: Yahoo!

 

The saying goes ‘never bet against the Fed.’  The U.S. Federal Reserve’s nearly endless resources deter even the most seasoned investors from going against it.  What the Fed wants, the Fed gets… or so we are to believe…

    

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Turkey issues $1.25 billion sukuk and sets up Islamic finance center as it finally embraces Islamic finance

Istanbul

 Source: Haberler

The Turkish government decided to jump back into the sukuk market with its latest $1.25 billion sukuk al-ijara.  The country’s first sovereign sukuk was back in September 2012 with a $1.5 billion issue.  The first issue as well as this latest issue have been very successful with high demand from the Middle East.  So much so that Turkey has now decided to embrace Islamic finance by setting up an Islamic finance research center.

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