Investors are cautiously returning to the Middle East, betting on economic recovery and political stability following a fragile ceasefire and shifting regional dynamics. However, President Donald Trump’s proposal to take over Gaza has injected new uncertainty.
A historic shake-up in the region is attracting fresh investment. The end of the Israel-Hamas war, political changes in Lebanon and Syria, and a weakened Iran have fueled hopes for economic stabilization.
In Egypt, where economic collapse once loomed, the government successfully executed its first dollar debt sale in four years. Investors have also begun buying Israeli bonds again, while Lebanon’s debt markets are seeing renewed interest as Beirut moves toward financial restructuring.
Trump’s proposal to “clean out” Gaza and develop a Middle East "Riviera" was widely condemned. Egypt has called an emergency Arab summit on February 27 to address the implications.
Bond investors initially welcomed the ceasefire but reacted negatively to Trump’s plan. Amundi, Europe's largest asset manager, reduced exposure to Egyptian bonds, fearing U.S. pressure on Cairo to accept Palestinian refugees.
Credit rating agency S&P Global has signaled that Israel's downgrade warning could be lifted if stability holds. Meanwhile, Michael Fertik, a U.S. venture capitalist, cited reduced geopolitical risk in his decision to expand operations in Israel’s AI sector.
However, risks remain. Yemen’s Houthi attacks have cost Egypt’s Suez Canal $7 billion in lost revenue, forcing shipping routes around Africa. Investors warn that any escalation could reverse economic gains.
Rebuilding efforts in Syria, Gaza, and Lebanon present opportunities for Turkey’s construction firms, with Trump’s envoy estimating a 10-15 year timeline for Gaza’s reconstruction. The World Bank estimates Lebanon’s war damage at $8.5 billion—about 35% of its GDP.
Lebanon’s defaulted bonds have more than doubled in price since Hezbollah’s influence weakened. New President Joseph Aoun is set to visit Saudi Arabia, a potential backer of Beirut’s restructuring, though $45 billion in debt still needs renegotiation.
The Middle East is entering a crucial economic phase, with peace prospects driving investment interest. Yet, uncertainty over Gaza, U.S. policy shifts, and regional tensions continue to shape the financial landscape.
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U.S. President Donald Trump said on Monday that there is a good chance” of reaching a deal with Iran, but warned that Washington would resume military operation if negotiations fail.
Iran will halt its own attacks as long as the United States maintains its pause on strikes, but Tehran remains sceptical of U.S. intentions, a senior Iranian source told on Sunday.
The Russia-Ukraine war is increasingly reshaping the Caspian region. From threats to energy infrastructure to renewed diplomatic efforts, countries across the region are adapting to the wider consequences of a conflict that continues to disrupt trade, transport and security.
A New York school district has put plans to introduce a humanoid robot into classrooms on hold after fierce criticism from teachers, Indigenous community members and state education officials over the use of artificial intelligence in schools.
Yemen warned the Houthis were seeking to replicate Iran's Strait of Hormuz strategy in the Red Sea, as U.S. President Donald Trump said there was a "good chance" of a deal with Tehran but warned strikes could resume if talks failed.
Afghanistan and Uzbekistan signed 22 trade agreements worth more than $200 million during a business forum in Kabul on Sunday, as officials from both countries pledged to deepen economic cooperation and expand trade and investment.
Moscow should stop linking Russia-Armenia relations to Azerbaijan, Baku's Foreign Ministry spokesperson Aykhan Hajizada has said, after Russia again raised the Collective Security Treaty Organisation's role during the former Garabagh conflict.
President Donald Trump has dismissed Israeli Prime Minister Benjamin Netanyahu's opposition to a potential sale of F-35 fighter jets to Türkiye, saying U.S. arms sales are decided by Washington alone. He also praised Türkiye as "a tremendous ally" and President Recep Tayyip Erdoğan as "a friend".
Pakistani businesses are warning that growing difficulties in obtaining United Arab Emirates (UAE) visas are disrupting trade, delaying investment and limiting access to a key export market, despite both Islamabad and Abu Dhabi saying there is no official visa ban.
Armenian Prime Minister Nikol Pashinyan has urged Russian President Vladimir Putin to resolve a dispute over trade restrictions imposed by Moscow, Yerevan's government said on Monday.
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