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 26 August that U.S. colleges would face serious challenges without Chinese students.
The Lithuanian parliament on Tuesday approved a new prime minister, marking a key step in the formation of the country’s ruling coalition.
According to the European-Mediterranean Seismological Centre (EMSC), an earthquake struck 50 km north-northwest of Derbent, Russia, at 00:33 local time. The quake’s epicentre was at a depth of 11 km.
Africa has unveiled a continental emergency preparedness and response plan to tackle cholera from September 2025 to February 2026.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
Türkiye’s Foreign Ministry said on Tuesday that Turkish Foreign Minister Hakan Fidan met his Irish counterpart Simon Harris in Dublin, Ireland’s capital.
According to the European-Mediterranean Seismological Centre (EMSC), an earthquake struck 50 km north-northwest of Derbent, Russia, at 00:33 local time. The quake’s epicentre was at a depth of 11 km.
Türkiye is facing a severe drought that is impacting water resources, shrinking reservoirs and unprecedented shortages affecting daily life, agriculture, and industry.
Azerbaijan, Turkmenistan, and Uzbekistan have strengthened trilateral cooperation, enhancing ties among the Turkic states around the Caspian Sea.
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