Middle East Economic Survey


No 28


MEES Agenda

International Banks Seen Forcing Gulf Project Margins Lower

Project finance margins have been falling and the fierce competition from international banks, awash with liquidity, is being blamed. Melanie Lovatt, recently in Dubai and Bahrain, assesses the impact on regional and local banks.

The profit margins that banks receive for participating in project finance deals have fallen sharply over the last year to an extent that local...