Germany's DEG eyes $188m MidEast investments

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

DEG, a unit of German state development bank KfW, plans to invest up to 140 million euros ($188m) in Middle Eastern and North African (MENA) private firms next year despite concerns over the region's short-term political instability.

DEG, which finances investments of private companies in developing and transition countries, has a current portfolio of 160 million euros in the MENA region excluding Turkey, Peter Thimme, DEG Director Europe, Middle East and Central Asia told Reuters in an interview.

"It is DEG's target to commit 70-140 million euros in the MENA in 2014," he said.

"We want to grow our investments in countries like Egypt, Iraq, Lebanon, Syria, but investing at this point of time is difficult," he added. "The biggest challenge for us here is the political instability."

DEG, which has not been very active in the MENA region since a wave of political unrest began in early 2011, sees a "fantastic" long-term potential in the region.

"Countries here have huge infrastructure needs, mainly in telco, roads, oil and gas. Iraq for example needs investments in agriculture and the financial system."

DEG last week invested $20m in UAE's water and waste water treatment firm Metito.

The company deployed $12.8m in Citadel Capital's Africa Joint Investment Fund a few years ago and provided a quasi-equity loan of $28 million to Germany's Bauer Resources GmbH for a project in Oman.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Popular
Most Discussed