Middle East survives credit crunch

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Abdel-Wadood: there has been a slight loss of risk appetite in some local banks.

The tightening in global credit markets last month has had some negative effects for Middle East borrowers, but has created opportunities for many of the region's private equity firms.

Stock markets in Europe, the US and the Far East were hit as many banks revealed the extent of their exposure to sub-prime loans.

Dubai Financial Market and the Abu Dhabi Securities Market were the only GCC stock exchanges to lose substantial value in the ensuing sell-off, as some international investors moved their money out of markets perceived to carry a higher risk.