By Dinesh Nair
'Potential for $25-$30bn of large to medium sized projects in the pipeline' - BNP head.
The Gulf Arab market for project finance could reach $30 billion in 2010 on improved liquidity and increased lending, a banker at French group BNP Paribassaid on Monday.Speaking to Reuters, Christophe Mariot, head of project finance, BNP Paribas, said: "There is a potential for $25-30 billion of large to medium-sized projects in the pipeline. It could be more if some of the large projects are completed."
He most of that volume would be accounted for by seven or eight projects currently planned, without elaborating.
Mariot added: "I think banks are more cautious on mainstream lending or lending to corporates."
Gulf loan markets were hit by high profile defaults last year and profit at regional banks was burdened by provisions for bad loans.
Mariot said the market was big enough to accommodate banks, leading to little pressure on banks to bid at low prices. (Reuters)For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.