Much has been written in recent years about the booming economies of India and China. But one other region of the world is undergoing an even more remarkable transformation. According to the International Monetary Fund, the Middle East’s gross domestic product is set to outpace global growth rates during 2008 for the eighth successive year, with the regional economy predicted to expand by 6 to 7 per cent.

As the region’s financial markets become more liquid and sophisticated, opportunities are emerging for traders throughout the world to engage in its burgeoning economy. And although it is currently not common practice to use algorithmic or automated techniques to execute trades with exchanges that have matching engines located in the region, that is set to change in the near future as both the technological infrastructure and market liquidity continue to develop. Indeed, the Dubai Mercantile Exchange (DME) intends to evaluate the merits of having its own matching engine located in Dubai in the future.

To take advantage of these emerging opportunities, traders will have to leave the comfort of their home environment, if only virtually. The story of the region’s progress over the past few years may persuade them to do just that.

Growth and diversification

Private and public sector investment in the Middle East is growing at an unprecedented rate, bolstered by the consistently high price of oil and other commodities. In the Gulf Cooperation Council countries alone – Saudi Arabia, Kuwait, the United Arab Emirates (UAE), Oman, Qatar and Bahrain – at least USD 800 billion is planned to be invested over the next five years. This includes major oil and gas projects by national oil companies, public-private partnership infrastructure schemes and private sector property developments.

The region is now using the wealth generated by its enormous reserves of oil and gas to encourage economic diversification, make substantial overseas investments and attract international investors and expertise. The entrepreneurial spirit is deeply ingrained in the region’s culture, combining with sound economic policies and a strategic use of its physical and human resources to drive the Middle East’s recent growth and providing further opportunities for trade as the region develops new markets. ...

Registered viewers can post questions and discussion points about this article below

---

Discussion of articles is limited to registered users. Click here to register now click here to return to the top of the page