Historic political shake-up of region encouraging financiers
Ceasefire expected to take pressure off Israel's finances
Major funds increasing positions in Egypt
Expects resolution of Lebanon's crisis driving up its bonds
(Recasts heading, includes emergency Arab summit in paragraph 8)
By Marc Jones and Steven Scheer
LONDON/JERUSALEM, Feb 9 (Reuters) - A historic shake-up of the Middle East is starting to draw global financiers, warming to the potential customers of relative peace and economic healing after a lot turmoil.
President Donald Trump's proposal that the U.S. take over Gaza might have thrown a curveball into the mix, but the fragile ceasefire in the Israel-Hamas war, Bashar al-Assad's ouster from Syria, a weakened Iran and a new federal government in Lebanon have fed hopes of a reset.
Egypt, the area's most populated nation and a key negotiator in the recent peace talks, has just handled its very first dollar debt sale in 4 years. Not too long ago it was dealing with economic disaster.
Investors have actually started purchasing up Israel's bonds again, and those of Lebanon, wagering that Beirut can lastly start repairing its linked political, financial and financial crises.
"The last few months have quite reshaped the region and embeded in play a really various dynamic in a best-case scenario," Charlie Robertson, a veteran emerging market expert at FIM Partners, said.
The concern is whether Trump's strategy for Gaza irritates stress again, he included.
Trump's call to "clear out" Gaza and produce a "Riviera of the Middle East" in the enclave was met with worldwide condemnation.
to the uproar, Egypt said on Sunday it would host an emergency Arab top on February 27 to discuss what it explained as "major" developments for Palestinians.
Credit rating agency S&P Global has actually indicated it will eliminate Israel's downgrade warning if the ceasefire lasts. It acknowledges the complexities, however it is a welcome possibility as Israel prepares its very first significant financial obligation sale considering that the truce was signed.
(UN)PREDICTABILITY
Michael Fertik, a U.S. investor and CEO of synthetic intelligence company Modelcode.ai, said the easing of stress had added to his decision to open an Israeli subsidiary.
He aspires to hire skilled local software programmers, but geopolitics have actually been a factor too.
"With Trump in the White House, no one questions the United States has Israel ´ s back in a fight," he said, explaining how it offered predictability even if the war re-ignites.
Having mainly remained away when Israel ramped up costs on the war, bond financiers are also starting to come back, main bank data programs.
Economy Minister Nir Barkat informed Reuters in an interview last month that he will be looking for a more generous spending plan focusing on "bold economic development."
The snag for stock investors though, is that Israel was among the very best carrying out markets worldwide in the 18 months after the October 7, 2023 attacks. Since the ceasefire - which has corresponded with a substantial U.S. tech selloff - it has remained in retreat.
"During 2024, I think we found out that the marketplace is not actually afraid of the war however rather the internal political conflict and tensions," said Sabina Levy, head of research at Leader Capital Markets in Tel Aviv.
And if the ceasefire buckles? "It is reasonable to assume a negative response."
Some financiers have actually already responded severely to Trump's surprise Gaza move.
Yerlan Syzdykov, [users.atw.hu](http://users.atw.hu/samp-info-forum/index.php?PHPSESSID=3af3a532441bcd1ccf61b5937545e4d7&action=profile
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Investors Return to New look Middle East, but Trump Causes Some
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