Middle East Economic Survey


No 52


Recent Project Finance Deals Secure Funding, But Subprime Remains Liquidity Threat

Most major Gulf deals approaching banks for funding after the US subprime mortgage crisis triggered the global credit squeeze in late summer have seen a good response, which is cause for optimism in the project finance sector. But the subprime crisis has already precipitated changes in deal structure and pricing, and if banks balance sheets are constrained by...