This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Investing in the Middle East: Qatar

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

"If Moses had taken a right instead of a left, we'd have the oil and they'd have the sand." -- Old Jewish proverb

NEW YORK ( TheStreet ) -- Four words define investing in the Middle East: Israel, oil, and hazardous and opportunity. Israel defines such investing in two ways. First, Israel is a principal in one of the two major conflicts in the region, specifically, the Israeli-Palestinian conflict (the other being the conflict in Iraq). Second, whereas Silicon Valley used to be the international center of innovation, Israel has begun to displace the Valley as that center.

As for oil, while not omnipresent in the Middle East, it is present in sufficient amounts that it's difficult to discuss Middle East investments without considering the impact of oil. Hazardous and opportunity go hat in hand when one considers investment in the developing world.

Having organized and run many Israeli investment clubs on the East Coast during the 1990s, I developed a lot of interest not only in companies in Israel but also those elsewhere in the Middle East. This series of articles will explore investing in one of the more volatile parts of the world. Is the potential reward worth the risk? That's something every investor has to assess for themselves.

Many might view investments in the developing world from the perspective of the stability of a given country's government. Israel ranks as the region's long-standing stable democratic government, but what about in countries in which a western-style democracy isn't present? There are, after all, a number of such countries in the Middle East. ( Egypt, anyone? )

In the past, one might have looked at Middle Eastern countries by their affiliation with the West, either Europe or the United States, with the mantra of avoiding those countries lacking such affiliation. During the past half century, that view has been frequently tested and found to be wanting. How, then, can one assess the "investability" of a given Middle Eastern country. One approach may be found in the work of economist Hernando de Soto Polar.

Based on his observations, de Soto suggested that the key to growing an economy, particularly those in the developing world, is in the ability and willingness of the legal system to enforce property rights. Countries with that legal system will see economic growth boom, and those without it will be hobbled economically.


Related Stories
Today's Leading Oil Exporters: Investment Implications
Hedging Emerging Market Investments

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PMNA $13.61 0.44%
GULF $21.19 0.00%
MES $27.42 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs